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RKLB · Q2 FY2026

Rocket Lab Corp Q2 FY2026 earnings analysis

By SageNoodle ResearchNeutral
Reported results versus estimates
MetricActualEstimateResult
Revenue$234.1M$144.5M (yr ago)Beat
EPS-$0.08-$0.13 (yr ago)Beat
Free Cash Flow-$0.11B-$0.06B (yr ago)Miss
Gross Margin36.1%32.1% (yr ago)Beat
Operating Margin-24.6%-41.3% (yr ago)Beat

What changed

Revenue increased 62.0% year over year to a record $234.1 million, while gross margin expanded 4.0 percentage points and the operating loss narrowed despite higher research and administrative spending. The counterweight was free cash flow of approximately -$0.11 billion, worse than -$0.06 billion a year earlier, as working capital and continued investment absorbed cash.

Impact on the investment thesis

The quarter strengthens the operating case but does not justify the expectations embedded in a $61.96 share price. We establish base fair value at $33.10 per share: higher revenue and backlog support the forecast, but negative free cash flow, Neutron execution risk and acquisition complexity constrain the multiple.

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