Q2 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $234 million | up 62% year-over-year |
| Space Systems Revenue | $189.5 million | up 38.6% sequentially |
| Launch Services Revenue | $44.6 million | down 30% sequentially |
| GAAP Gross Margin | 36.1% | Not stated |
| Adjusted EBITDA Loss | $8.8 million | Not stated |
| Total Backlog | $2.36 billion | Not stated |
Guidance and outlook
- Q3 revenue is expected to range between $250 million and $265 million.
- Q3 GAAP gross margin is anticipated to range between 29% and 31%.
- Q3 non-GAAP gross margin is expected to range between 35% and 37%.
- Q3 GAAP operating expenses are expected to range between $143 million and $149 million.
- Q3 non-GAAP operating expenses are expected to range between $121 million and $127 million.
- Q3 adjusted EBITDA loss is expected to range between $17 million and $23 million.
How management sounded
Positive (+7 on our -10 to +10 scale). Management highlighted record revenue, a massive backlog, and significant strategic wins, though they remain focused on the execution risks of the upcoming Neutron test flight. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Neutron Scaling
Asked: How quickly can you reach 10 launches and are you considering ASP increases?
Answer: Management is focused on reusability to scale cadence and noted that they see more upside than downside to ASPs given the constrained market.
Iridium Strategy
Asked: What are the synergies and growth opportunities with Iridium?
Answer: The acquisition allows Rocket Lab to become a self-launching Tier 1 space power, combining launch, manufacturing, and applications, with an immediate focus on growth in IoT, PNT, and defense.
Neutron Risks
Asked: What are the biggest risks to getting Neutron to the pad in Q4?
Answer: Stage testing is the primary risk, as it involves fully fueled vehicles and engine ignition, which are critical milestones before flight.
Free Cash Flow
Asked: Why was cash burn higher in the quarter and what is the outlook?
Answer: Cash burn was driven by Neutron tail production and replenishing the Mynaric supply chain, with cash flow expected to remain elevated until after the first successful Neutron test flight.
What to watch before the next call
- The progress of Neutron's stage testing and final integration ahead of the Q4 2026 pad delivery target.
- Regulatory and shareholder approval processes for the pending Iridium Communications acquisition.
- The timing of the first Neutron test flight, which management identified as a key turning point for financial performance.
