EARNINGS RESULTS · Q2 2026

Rocket Lab Q2 2026: Revenue Up 61.99%, Operating Margin -24.57%

Results for the quarter ended 2026-06-30 bring the business drivers and cash after investment into focus. Quarterly free cash flow was -$0.11 bn. The dated assessment on 2026-10-08 was wait at a reference price of $71.92.

Rocket Lab · RKLBPublished October 8, 2026Quarter ended June 30, 2026

Q2 2026: What the Quarter Delivered

Revenue: $0.23 bn
Revenue growth YoY: 62%
Operating income: -$0.06 bn
Operating margin: -24.6%
Diluted EPS, GAAP: -$0.08

Rocket Lab reported $0.23 bn of revenue in Q2 2026. Revenue rose 61.99% from the comparable prior-year quarter. Operating loss was $0.06 bn, with an operating margin of -24.57%. Reported diluted EPS was -$0.08.

Space Systems drove the latest fiscal quarter’s revenue growth. Launch Services revenue declined from the comparable fiscal quarter, so the improvement should not be mistaken for broad strength across the business.

How Revenue Reached Operating Profit

The quarter's revenue and operating result imply an operating margin of -24.57%: $24.57 of operating loss for every $100 of revenue, before interest and tax.

Rocket Lab’s operating margin is moving in the right direction.

What the Reported Earnings Include

Other non-operating income: $0 bn
GAAP net income: -$0.05 bn
Diluted weighted-average shares: 0.63 bn shares

Q2 2026 GAAP net income was -$0.05 bn. Other non-operating income was $0 bn.

Reported GAAP earnings remain negative. GAAP earnings include non-operating items, so changes in diluted earnings per share are not a clean measure of progress in the underlying business.

The latest quarter’s other non-operating income was negative, not an earnings boost. I would judge progress through operating results and cash use rather than read a changing per-share loss as proof of durable profitability.

Cash Left After Investment

Operating cash flow: -$0.22 bn
Cash flow after reported cash capital purchases: -$0.37 bn
Quarterly operating cash flow: -$0.08 bn
Quarterly cash CapEx: $0.03 bn
Quarterly OCF less cash PPE purchases: -$0.11 bn

In Q2 2026, operating cash flow of -$0.08 bn less cash capital expenditure of $0.03 bn left -$0.11 bn of free cash flow. Cash investment exceeded cash generated from operations.

Here, cash flow after capital purchases means operating cash flow less the issuer’s reported cash purchases of productive assets. It remained negative, and the latest quarter deteriorated from the preceding fiscal quarter.

Rocket Lab needs to fund ongoing operations and productive assets while advancing its development plans. The reported cash flows do not isolate Neutron’s cash cost, so the entire cash deficit should not be attributed to that program.

The Verdict Recorded on 2026-10-08

Verdict Invest recorded wait on 2026-10-08, using a reference price of $71.92 dated 2026-10-07. This assessment relates to the Q2 2026 results, with a 12-month horizon and stated validity through 2026-11-07.

Confirmation to watch: Space Systems deliveries sustain reported revenue growth while operating cash use improves.
Confirmation to watch: Electron launches reliably and launch-pad availability supports customer missions.
Confirmation to watch: Neutron development advances toward reliable commercial service without prolonged delays.
Confirmation to watch: The proposed Iridium transaction gains clarity on completion, financing and integration.
Risk to this assessment: Launch failures or spacecraft defects disrupt customer deliveries and damage confidence.
Risk to this assessment: Neutron delays extend development spending without a credible route to commercial service.
Risk to this assessment: Customer financing or collection problems deepen operating cash use.
Risk to this assessment: Acquisition funding or new share issuance weakens the outcome for existing shareholders.

Companies to explore

Verdict: Invest