Rocket Lab USA, Inc. (RKLB) experienced a significant after-hours plunge of 5.18% following the release of its first-quarter 2025 financial results. The space technology company's stock price dropped sharply despite reporting a narrower-than-expected net loss, as revenue figures fell well short of analysts' expectations.

According to the earnings report, Rocket Lab's Q1 revenue came in at $80.804 million, significantly below the IBES estimate of $121.4 million. This substantial miss likely triggered the sell-off in after-hours trading. However, the company's net loss for the quarter was $60.616 million, which was better than the expected loss of $65 million. Operating expenses for the period were reported at $94.435 million.

Looking ahead, Rocket Lab provided guidance for the second quarter of 2025, projecting revenue between $130 million and $140 million. The company also expects an adjusted EBITDA loss between $28 million and $30 million for Q2. Additionally, Rocket Lab announced plans to implement a new holding company structure by June 1, 2025, which may have added to investor uncertainty. Despite these mixed signals, the market's immediate reaction suggests that the revenue miss outweighed the positive aspects of the earnings report, leading to the sharp after-hours decline.