The company reported “absolutely zero issues” selling pre-flight Neutron missions at their full $50 million to $55 million price.
- Rocket Lab called Neutron demand “very high” as limited early capacity must be divided among commercial, government and internal missions.
- The firm will reserve some Neutron capacity for its own operations, including future space-application and Iridium needs.
- Q2 revenue rose 62% to a record $234.07 million, beating estimates, while the $0.08 per-share loss was wider than expected.
Shares of Rocket Lab (RKLB) ended their seven-day rally on Monday, even as the space company called Neutron demand “very high” and said it must carefully allocate the rocket’s limited early capacity.
RKLB stock fell 3% on Monday to close at $80.04, before extending its decline following the results. Shares were down another 7% in overnight trading late Monday.
Neutron Demand Outpaces Supply
CEO Peter Beck said in the company’s earnings call that Rocket Lab must divide Neutron’s initial missions among commercial operators, U.S. government customers and its own space-application plans, including the future needs of Iridium Communications.
“We have a very limited supply of Neutrons coming out the gate, and we have to be very, very careful with where we put those,” Beck told analysts. Neutron has yet to fly, but Beck said demand is “just not a concern,” adding that Rocket Lab has encountered “absolutely zero issues in selling full price Neutrons pre-test flight.”
The rocket entered the market with an average selling price of between $50 million and $55 million, without significant early-launch discounts. CFO Adam Spice said pricing has more potential upside than downside as the launch shortage deepens. “The market is saying, from the customer perspective, it’s not saying if, it’s more when,” Spice said.
Rocket Lab Reserves Neutron Capacity
Rocket Lab has booked Neutron missions for commercial and government customers, including Kepler Communications and a $397 million Space Force program. However, it plans to reserve some capacity for its own operations.
“A significant portion of Neutron down the road is going to be used to service our own demand,” Spice said, adding that Rocket Lab does not want to “squander that opportunity” by selling too much capacity too early. Beck expects launch supply to remain constrained as rival providers reserve capacity for internal programs. “I have personally never seen launch so constrained pretty much ever,” he said.
Rocket Lab still targets delivering Neutron to the pad in the fourth quarter of 2026, although “the window for an end-of-year launch is narrowing,” Beck said. Its Archimedes engines have completed more than 400 hot fires, and follow-on vehicles are already being built. “It is not just to get to the pad quickly for flight one,” Beck said. “It is really about how do we get to flight 10 in the shortest time possible.”
RKLB Q2 Review
Rocket Lab reported record second-quarter (Q2) revenue of $234.07 million, up 62% from the previous year and above the $230.94 million consensus. Its loss of $0.08 per share, however, was wider than the expected $0.05.
The adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) loss of $8.8 million was much better than the guided loss of $20 million to $26 million, while its 41.5% non-GAAP gross margin also topped guidance. Backlog surged 137% to a record $2.36 billion, with a launch backlog exceeding 90 missions.
Rocket Lab expects third-quarter revenue of $250 million to $265 million, well above the $235.9 million consensus. It projected a non-GAAP gross margin of 35% to 37% and an adjusted EBITDA loss of $17 million to $23 million. Free cash flow was negative $110.1 million in Q2 as Neutron investment accelerated. Spice said positive free cash flow could take another 18 to 24 months after Neutron’s first successful flight.
How Do Retail Traders Feel About RKLB?
On Stocktwits, retail sentiment for RKLB jumped to ‘extremely bullish’ from ‘bullish’ levels a day ago amid a 1,069% surge in 24-hour message volumes.
One user said, “$RKLB it’s going to see funny when all these shorts are crying and pouting tomorrow. Excellent quarter. Everything is on track. It’s on”
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Another user said, “$RKLB so many people are going to pile in on this dip tomorrow. Wouldn’t be surprised to see it hit $80 again tomorrow by close”
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RKLB stock has jumped 79% over the past year.
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