Rocket Lab USA, Inc. (RKLB) is set to report its second-quarter earnings on Thursday, August 7. Ahead of the release, Wall Street analysts hold a moderately bullish outlook, with optimism tied to key upcoming milestones like the Neutron rocket’s launch in the second half of 2025. However, expectations for further share price gains are limited, given the stock’s massive 850% surge over the past year.
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Rocket Lab focuses on developing and launching small satellite rockets. Its key projects include the Electron rocket, used for small satellite missions, and the Neutron rocket, a reusable, medium-lift launcher that is still in development.
What to Expect from Rocket Lab’s Q2 Earnings
Wall Street analysts expect Rocket Lab to report an EPS (earnings per share) of -0.10 for Q2, compared to an EPS of -0.08 in the same quarter last year. Meanwhile, analysts project Q2 revenues at $135.41 million, marking a growth of 27% year-over-year.
Additionally, the company expects an adjusted EBITDA loss ranging between $28 million and $30 million.
Moving ahead, management plans to generate positive free cash flow by 2026, helped by an expected $900 million in revenue and better profit margins as the Neutron rocket enters the medium-lift market. The company may turn GAAP profitable in 2027, but it could see its first profitable quarter as early as late 2026.
Analysts’ Views Ahead of Q2 Earnings
Investors can utilize TipRanks’ “Bulls Say, Bears Say” tool to gain valuable insights into the contrasting analysts’ views on RKLB stock.
According to bullish analysts, Rocket Lab’s acquisition of Geost strengthens its position in the national security space by adding vital payload capabilities. Moreover, its selection for the $5.6 billion NSSL Phase 3 Lane 1 program boosts Neutron’s prospects in securing key government contracts and competing with major U.S. launch providers.
On the other hand, bears believe that the U.S. Space Force is shifting toward buying services from commercial providers when available, which could limit future contract opportunities for Rocket Lab.
Is Rocket Lab Stock a Buy?
According to TipRanks, RKLB stock has received a Moderate Buy consensus rating, with nine Buys and four Holds assigned in the last three months. The average Rocket Lab stock price target is $38.82, suggesting a potential downside of 13% from the current level.
