Equity Research · Earnings Update
Rocket Lab USA (RKLB)
Summary and key takeaways
Rocket Lab posted record Q1 2026 revenue of $200.3 million, up 63.5% year-over-year, surpassing all guidance metrics including revenue, margin, and Adjusted EBITDA. Space Systems revenue was $136.7 million (+57.2%) and Launch Services revenue was $63.7 million (+78.9%). GAAP EPS loss narrowed to $0.07 from $0.09 in the prior quarter. The company exited the quarter with a record $2.2 billion backlog and access to more than $2 billion in liquidity.
Results snapshot
| Metric | Q1 2026 | YoY change |
|---|---|---|
| Total revenue | $200.3M | +63.5%, record, beat all guidance |
| Space Systems revenue | $136.7M | +57.2% |
| Launch Services revenue | $63.7M | +78.9% |
| GAAP EPS | ($0.07) | Narrower than ($0.09) prior quarter |
| Non-GAAP gross margin | 43% | — |
| Backlog | $2.2B | Record |
Analysis
Both segments grew strongly, with Launch Services actually outgrowing Space Systems (78.9% vs. 57.2%) — notable because launch cadence has historically been the more capacity-constrained, harder-to-scale side of the business. A narrowing EPS loss alongside record revenue and a $2.2 billion backlog is the shape of a speculative-sleeve position genuinely maturing, not just growing top-line while losses widen.
Guidance
- Q2 2026 revenue: $225–240 million (continued growth guided)
- Q2 2026 GAAP gross margin: 33–35%
- Q2 2026 non-GAAP gross margin: 38–40%
Updated investment thesis
RKLB is a Spec-sleeve holding on the small-satellite launch and space-systems buildout thesis. This quarter's across-the-board beat, record backlog, and narrowing losses are strong evidence the thesis is maturing on schedule — a genuinely encouraging print for one of the book's smaller speculative positions.
No position changes from this report.
Risks to this position
- Launch-cadence risk: space-launch businesses are subject to schedule slips, weather delays, and occasional mission failures that can materially affect a given quarter.
- Margin-guidance risk: Q2's guided GAAP gross margin (33–35%) is below Q1's actual 43% non-GAAP figure, suggesting some near-term margin give-back.
- Capital-intensity risk: space infrastructure remains a capital-intensive business even as losses narrow.
Sources & references
- Rocket Lab Announces First Quarter 2026 Financial Results — investors.rocketlabcorp.com
- Rocket Lab (RKLB) Q1 2026 Earnings — mlq.ai
- Rocket Lab's (NASDAQ:RKLB) Q1 CY2026: Strong Sales — StockStory / TradingView