Shares of Rocket Lab USA, Inc. (RKLB) tumbled 5.18% in after-hours trading on Thursday following the release of its first-quarter 2025 financial results. The space technology company reported revenue of $80.804 million, falling significantly short of the $121.4 million estimated by analysts, a miss of approximately $40.6 million.

The disappointing revenue figures overshadowed other aspects of Rocket Lab's financial performance. The company posted a net loss of $60.616 million, which was actually better than the estimated loss of $65 million. Operating income came in at -$59.188 million, slightly worse than the expected -$58.1 million, while operating expenses totaled $94.435 million for the quarter.

Despite the weak Q1 results, Rocket Lab provided a more optimistic outlook for the second quarter of 2025. The company guided for Q2 revenue between $130 million and $140 million, with an adjusted EBITDA loss ranging from $28 million to $30 million. Additionally, Rocket Lab announced plans to implement a new holding company structure by June 1, 2025, which it describes as a tax-free merger. The company also revealed a new partnership with the U.S. Air Force for a Neutron launch for a re-entry mission, potentially signaling future growth opportunities in government contracts.