Rocket Lab (NASDAQ: RKLB) shares have fallen roughly 58% from their 2026 highs, even as the company delivers some of the strongest growth figures in its history.
The stock’s decline accelerated following the high-profile IPO of Space Exploration Technologies, known as SpaceX, which triggered a broad selloff across publicly traded space-economy stocks this summer.
Despite the share price weakness, Rocket Lab reported record revenue of $234 million for the second quarter, representing a 62% increase year over year and a $34 million improvement over its own Q1 record.
The company posted a net loss of $49 million for the quarter, an improvement from the $66 million loss recorded in the same period a year earlier, resulting in a loss per share of $0.08.
Analyst consensus estimates had called for revenue of $231.6 million and a loss per share of $0.03, meaning the headline results were described as a mixed bag against Wall Street expectations.
Management highlighted surging demand across all areas of the business, with the company’s backlog growing 137% year over year to a record $2.36 billion.
The company also disclosed that, when combined with deals closed after the quarter ended, it booked more than $1 billion in new contracts across its launch and space systems divisions already in the third quarter.
Rocket Lab’s third-quarter guidance calls for revenue between $250 million and $265 million, representing approximately 66% growth and coming in well ahead of analyst consensus estimates of $235.9 million.
The Q3 outlook also anticipates a gross margin of 30% and an adjusted EBITDA loss of roughly $20 million, both figures measured at the midpoint of the company’s guidance range.
The space systems segment continues to expand, with Rocket Lab recently winning a Space Force contract to build multiple geostationary satellites, contributing to the company’s total backlog now sitting at $2.36 billion.
Rocket Lab is also in the process of acquiring Iridium Communications, a satellite internet provider, for $8 billion in a deal structured as half stock and half cash, a move designed to help it compete more directly with SpaceX.
The company held approximately $2.1 billion in cash and equivalents, providing meaningful runway as it continues to invest in growth while operating at a loss.
Rocket Lab posted a $94 million net loss for the first half of 2026, and the business remains unprofitable at a market valuation of around $45 billion.
Central to the company’s long-term revenue ambitions is the Neutron rocket, a larger and reusable vehicle designed to carry significantly heavier payloads into orbit than the existing Electron rocket.
The Neutron is expected to make its first full test flight either later this year or in early 2027, though there is concern among some analysts that the timeline could be pushed back yet again.
For Rocket Lab’s stock to trade at just 10 times revenue at its current share price, the company would need to grow annual revenue to approximately $4.5 billion, nearly six times its current trailing figure.
The growth path to that scale runs almost entirely through Neutron, and until that vehicle proves itself commercially, the gap between business momentum and stock valuation remains a key risk for prospective investors.
