Rocket Lab USA Inc (RKLB) Q1 2025 Earnings Call Highlights: Record Revenue and Strategic Expansions

In This Article:

  • Revenue: $122.6 million, up 32% year-over-year.

  • Launch Services Revenue: $35.6 million.

  • Space Systems Revenue: $87 million.

  • Gross Margin (GAAP): 28.8%.

  • Gross Margin (Non-GAAP): 33.4%.

  • Total Backlog: $1.067 billion.

  • Launch Backlog: $422.2 million.

  • Space Systems Backlog: $644.8 million.

  • Operating Expenses (GAAP): $94.4 million.

  • Operating Expenses (Non-GAAP): $76.8 million.

  • R&D Expenses (GAAP): Increased by $6.9 million quarter-on-quarter.

  • R&D Expenses (Non-GAAP): Increased by $4 million quarter-on-quarter.

  • Cash and Equivalents: $517 million at the end of Q1 2025.

  • Adjusted EBITDA Loss: $30 million.

  • Q2 2025 Revenue Guidance: $130 million to $140 million.

  • Q2 2025 Gross Margin Guidance (GAAP): 30% to 32%.

  • Q2 2025 Gross Margin Guidance (Non-GAAP): 34% to 36%.

  • Q2 2025 Adjusted EBITDA Loss Guidance: $28 million to $30 million.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Rocket Lab USA Inc (NASDAQ:RKLB) reported a near-record quarterly revenue of $122.6 million, marking a 32% increase compared to the previous year.

  • The company successfully launched five Electron missions with 100% mission success, demonstrating reliable access to space.

  • Rocket Lab USA Inc (NASDAQ:RKLB) has been selected for the Department of Defense's high-value launch contract in the National Security Space Launch (NSSL) program, highlighting its capability as a launch provider.

  • The company is expanding its vertical integration with the acquisition of Mynaric, which specializes in laser-based satellite communications, enhancing its product offerings.

  • Rocket Lab USA Inc (NASDAQ:RKLB) is making significant progress with its Neutron launch vehicle, targeting its first launch in the second half of the year, which is expected to drive future growth.

Negative Points

  • The company experienced a sequential decline in revenue of 7.4% due to a mix of lower-priced Electron missions and a reduction in component businesses.

  • Rocket Lab USA Inc (NASDAQ:RKLB) reported a negative GAAP operating cash flow of $54.2 million in the first quarter, driven by lumpy cash receipts and continued investment in Neutron.

  • The company faces challenges with production and supply chain issues, particularly highlighted in its acquisition of Mynaric.

  • There is a high level of fixed overhead and expenses associated with maintaining launch operations, impacting profitability when launch cadence is not optimized.

  • Rocket Lab USA Inc (NASDAQ:RKLB) is experiencing elevated levels of negative free cash flow, expected to continue until the first launch of Neutron is achieved.