Rocket Lab Q2 Revenue Rises 62% YoY to Quarterly Record as Backlog Rises to $2.36 Billion

TradingKey - On August 10, Eastern Time, Rocket Lab ( RKLB) released its second-quarter 2026 financial results during post-market trading.

During the period, Rocket Lab's revenue increased by 62% year-over-year to $234 million, setting a quarterly revenue record that was $34 million higher than the record of the previous quarter, and beating the consensus market expectation of approximately $232 million.

By segment, product revenue increased by approximately 96% year-over-year to $181 million, and service revenue was $52.719 million; gross margin was approximately 36%, up by about 4 percentage points year-over-year.

During the period, backlog reached $2.36 billion, up 137% year-over-year and also setting a new record. The company stated that, including post-quarter new orders, it has signed more than $1 billion in launch and space systems contracts Q3 to date; in Q2 and post-quarter, programs such as Electron, HASTE, and Neutron secured over $437 million in new launch contracts, with the launch backlog covering more than 90 missions. Some of these contract values include options, and the actual recognition pace remains dependent on contract execution and customer option exercises.

However, the company is still in an investment phase and has not yet turned a profit. During the period, GAAP gross profit was $84.58 million, corresponding to a GAAP gross margin of approximately 36.1%; operating expenses were $142 million, and GAAP operating loss was $57.51 million. The net loss for the period was $49.26 million, narrowing from $66.41 million in the same period last year; diluted loss per share was $0.08, compared to $0.13 in the prior-year period. Adjusted EBITDA loss was $8.83 million.

Source: Rocket Lab Q2 2026 Financial Results

In terms of guidance, Rocket Lab expects Q3 revenue to be between $250 million and $265 million; GAAP gross margin to be between 29% and 31%; non-GAAP gross margin to be between 35% and 37%; and adjusted EBITDA loss is expected to be between $17 million and $23 million.

Among these, the revenue guidance continues to point to a quarterly high, but the gross margin range is lower than the actual GAAP gross margin in Q2, and the market will subsequently focus on the impact of business mix, Neutron program investment, and scaled delivery on profit margins.

Following the release of the earnings report, Rocket Lab once fell over 4%, with the decline subsequently narrowing to approximately 1% to trade at $78.93.

Rocket Lab stock price chart, Source: TradingView

Overall, Rocket Lab achieved record revenue and backlog this quarter, with its net loss narrowing year-over-year and Q3 revenue guidance continuing to rise; however, the company is still investing capital in Neutron, satellite projects, and M&A integration, and its gross margin guidance for the next quarter has eased back. For a market that has already priced in high growth expectations, whether Neutron milestones can progress as planned, the efficiency of converting backlog into revenue and cash flow, and the capital and integration arrangements after the acquisition of Iridium will be more critical validation variables post-earnings.