Shares of Rocket Lab USA, Inc. (RKLB) surged 7.03% in after-hours trading on Monday following the company's release of better-than-expected third-quarter 2025 financial results and strong future guidance.
The space technology company reported record quarterly revenue of $155 million, representing a 48% year-over-year increase and beating analyst expectations of $151.75 million. Rocket Lab also posted a smaller-than-expected loss of $0.03 per share, significantly outperforming the analyst estimate of a $0.11 loss.
Rocket Lab founder and CEO, Sir Peter Beck, commented on the results: "This past quarter we've once again delivered record revenue of $155m at record GAAP gross margin of 37%, and a new annual launch record is just days away. With progress across our major space systems programs, record backlog of contracts for our launch services business, and well-timed, strategic M&A in growth areas that are well-aligned with next-generation defense programs like Golden Dome and the Space Development Agency's future constellations, our momentum is strong and we're poised to deliver long-term exciting growth."
Key highlights from the quarter include: - Securing 17 Electron launch contracts, marking a record-breaking quarter for dedicated launch contracts - Successfully completing two back-to-back HASTE missions, advancing hypersonic technology - Closing the acquisition of Geost, an electro-optical and infrared sensor maker, for up to $325 million - Opening Launch Complex 3, the test and launch site for the company's new medium-lift reusable rocket Neutron
Looking ahead, Rocket Lab provided an optimistic outlook for Q4 2025, projecting revenue between $170 million and $180 million, surpassing analyst expectations of $171.8 million. The company also updated its Neutron rocket schedule, with the vehicle expected to arrive at Launch Complex 3 in Q1 2026, followed by its inaugural launch pending successful qualification and acceptance testing.
The strong financial performance, record launch contracts, and positive outlook for both its current Electron rocket and upcoming Neutron rocket have contributed to investors' enthusiasm, driving the significant after-hours stock price increase.