Rocket Lab USA, Inc. shares plummeted 8.21% in pre-market trading on Tuesday, extending a sharp sell‑off that began after the company’s second‑quarter earnings report. The decline was triggered by a disappointing third‑quarter gross margin outlook and a likely delay in the debut of its Neutron rocket, which outweighed record revenue and a surging backlog.

The company guided for Q3 GAAP gross margins of 29% to 31%, well below the analyst consensus of 37.6%. Management attributed the margin compression to a shifting product mix, with lower‑margin satellite platforms expected to make up a larger share of revenue. Adding to the pressure, Rocket Lab appeared to push back the timeline for Neutron’s first flight, now aiming to deliver the vehicle to the launch pad in the fourth quarter rather than launching it then, with the CEO noting that the window for a year‑end launch is narrowing. The company also posted a Q2 loss of $0.08 per share, missing the consensus estimate of a $0.06 to $0.07 loss.

The negative sentiment overshadowed several positives, including record quarterly revenue of $234.1 million, up 62% year‑over‑year, a record backlog of $2.36 billion, and Q3 revenue guidance of $250 million to $265 million that topped Wall Street expectations. Still, the combination of margin weakness and uncertainty around Neutron’s timeline drove the steep pre‑market decline.