When compared to the first quarter of 2021, Rocket Lab’s recent quarter reported a revenue surge of 750%, making the third quarter of this year its best one ever.
- Rocket Lab noted in November that it has had 18 Electron launches in 2025 with 100% mission success.
- In November, the company said that it had postponed the launch of its Neutron rocket into 2026.
- On Thursday, the company said that the Neutron launch vehicle’s innovative “Hungry Hippo” captive fairing has completed qualification testing and is en route to Virginia for Neutron’s first launch.
With its shares more than doubling this year, Rocket Lab has become one of the market’s most-watched stocks, buoyed by multiple planned launches and new partnerships with commercial and national agencies around the world. Still, the delay of its Neutron rocket has remained a big talking point.
The year began with Rocket Lab completing its 59th Electron mission, deploying five satellites to low Earth orbit for French IoT constellation operator Kinéis. Since then, Rocket Lab’s stock has surged 102% to $51.56 in 2025, and the company has exceeded its own launch success milestones. In November, Rocket Lab reported that it had completed 18 Electron missions this year — all with 100% mission success.
A Delay In Neutron Launch: The Only Concern
In November, the company said it had postponed the launch of its Neutron rocket to 2026, a move that raised concerns among investors who had otherwise been optimistic about the company and had bet on Neutron as its key vehicle to boost revenue. The company's initial plan was to launch Neutron towards the end of this year.
“We are aiming to get Neutron to the pad in Q1 next year if all goes well, with the first launch thereafter,” Peter Beck said in a post-earnings call in November. Neutron would set Rocket Lab in competition with SpaceX’s Falcon 9, and analysts expect this rocket to make the company profitable in the near term.
Stifel in November said that it sees the delay in Neutron as “a more realistic goal, prioritizing mission success over speed.” However, Morgan Stanley analysts noted that schedule revisions prolong program spending and may have a “cascading manifest impact.”
“At the end of the day, Neutron will fly when we're very confident it's ready, and we're not going to break the mold of the Rocket Lab magic,” Beck said.
On Thursday, however, Rocket Lab gave investors a much-needed update on Neutron. The company said that the Neutron launch vehicle’s innovative “Hungry Hippo” captive fairing has completed qualification testing and is en route to Virginia for Neutron’s first launch.
Dubbed the Hungry Hippo, Neutron’s fairing halves remain attached to the rocket’s first stage throughout launch and landing back to Earth.
The stock pared gains made this year and has been trading below the all-time closing high of $69.27 it hit in October, following concerns about a delay in launching Neutron and an eventual acknowledgement of the company in November, resulting in a noticeable dip during the month.
Revenue Growth Faster-Than-Expected
Rocket Lab went public in August 2021 through a SPAC merger. The company's first quarter of fiscal 2021 reported revenue of $18.2 million, with revenue exceeding $100 million in the second quarter of 2024.
The company’s third-quarter 2025 revenue was $155.1 million, a 752% jump when compared to the first quarter of 2021. The recent quarter was its best quarter ever since 2021.
Beck said that Electron demand is accelerating faster than ever before, and the momentum continues to build, with the largest launch contract backlog yet: 49 launches on contract.
Turning to backlog, the company ended the third quarter of 2025 with nearly $1.1 billion in total backlog, with launch backlog accounting for approximately 47% and space systems representing 53%. During the quarter, the launch backlog contributed to share gains, supported by strong underlying trends as we convert a robust pipeline of opportunities across Electron and HASTE.
Even though losses have continued to balloon, the company’s margins have grown steadily, with gross margins now hitting 30% in the quarters of 2025. In the third quarter, Rocket Lab said that its reported gross margin was 37%, at the high end of its prior guidance range of 35% to 37%.
The company said that the cash consumption will remain elevated due to Neutron development, investments in subsequent Neutron tail production, and infrastructure expansion to scale the business beyond the initial test flight.
What Is Retail Thinking?
On Stocktwits, RKLB has seen its following grow by over 63% in the past year, while the retail user message count on the stock has more than tripled during the same period.
Rocket Lab’s retail sentiment improved to ‘bullish’ from the ‘bearish’ territory a week ago, with message volumes at ‘normal’ levels, according to data from Stocktwits.
A user on Stocktwits noted that Neutron is the key for analysts to expect the company to achieve profitability and could help the share price reach more than $100.
Shares of Rocket Lab have gained nearly 126% in the last 12 months.
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