Rocket Lab USA (RKLB) AI Stock Analysis

• Market Cap: $22.40B
• Dividend Yield: N/A
• Average Volume (3M): 18.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.17
• Revenue Growth: 52.42%
• EPS Growth: -1.33%
• Country: US
• Employees: 2,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.03
• Shares Outstanding: 534,156,300
• 10 Day Avg. Volume: 18,314,892
• 30 Day Avg. Volume: 18,403,313
• PEG Ratio: 0.00
• Price to Book (P/B): 33.03
• Price to Sales (P/S): 28.96
• P/FCF Ratio: -108.91
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 44.85
• Enterprise Value/Gross Profit: 141.50
• Enterprise Value/Ebitda: -130.63
• 1Y Price Target: $65.17
• Price Target Upside: 55.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): -0.38
• Revenue Forecast (FY): $599.39M

• Rating: 47 Neutral
• Price Target: $39.00 ▼(-6.99% Downside)

Rocket Lab USA's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. Technical analysis further indicates bearish momentum, while valuation metrics are weak due to a negative P/E ratio. However, the earnings call provides a positive outlook with strong revenue growth and strategic expansions, slightly offsetting the negative factors.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong demand for Rocket Lab's services, enhancing its market position and long-term business prospects.

Strategic Acquisitions

Acquiring Geost strengthens Rocket Lab's position in defense contracts, diversifying its revenue streams and enhancing competitive advantage.

Strong Backlog

A robust backlog ensures future revenue stability and reflects strong demand, supporting long-term growth and operational planning.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight challenges in cost management, which could hinder sustainable growth and investor confidence.

Cash Flow Issues

Persistent cash flow challenges limit Rocket Lab's ability to fund operations and growth initiatives, impacting financial flexibility.

High Operating Expenses

Elevated operating expenses strain profitability and could delay breakeven, affecting long-term financial health and investment capacity.

Rocket Lab USA Business Overview & Revenue Model

Company Description

Rocket Lab USA, Inc., a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft engineering and design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets. It also designs, manufactures, and sells Electron small orbital launch vehicles and the Photon satellite platforms, as well as developing the Neutron 8-ton payload class launch vehicle; conducts remote launch activities; and designs and manufactures a range of components and subsystems for the Photon family of spacecraft and broader merchant spacecraft components. The company serves commercial, aerospace prime contractors, and government customers. The company was founded in 2006 and is headquartered in Long Beach, California.

How the Company Makes Money

Rocket Lab generates revenue through multiple streams primarily focused on its launch services and satellite solutions. The main revenue source comes from the launch contracts it secures with commercial, government, and international customers to transport small satellites into orbit using its Electron rocket. Additionally, Rocket Lab derives income from the sales and services associated with its Photon satellite platform, which includes satellite design, manufacturing, and mission management. Significant partnerships, such as collaborations with NASA and various commercial entities, enhance its market presence and contribute to its earnings by securing a steady pipeline of launch contracts and satellite deployments.

Rocket Lab USA Financial Statement Overview

Summary

Rocket Lab USA is experiencing growth in revenue, but profitability and cash flow remain significant challenges. The company has improved its gross profit margin, yet it continues to face high operational costs and negative net income. The balance sheet shows a reasonable debt level, but the negative return on equity is concerning. Cash flow issues persist despite some growth in free cash flow, indicating the need for improved cash management strategies.

Income Statement

Rocket Lab USA has shown a positive revenue growth rate of 9.97% in the TTM, indicating an upward trajectory in sales. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin has improved to 29.04%, but the net profit margin remains deeply negative at -45.87%, highlighting ongoing challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.72, suggesting manageable leverage levels. However, the return on equity is negative at -48.14%, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is relatively stable, indicating a solid asset base, but the negative ROE is a concern for investors.

Cash Flow

Cash flow analysis reveals a challenging situation with negative operating cash flow and free cash flow. Although there is a positive free cash flow growth rate of 13.48%, the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is 1.84, suggesting that while free cash flow exceeds net income, the overall cash position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	554.53M	436.21M	244.59M	211.00M	62.24M	35.16M
Gross Profit	175.77M	116.15M	51.41M	18.99M	-1.89M	-11.82M
EBITDA	-190.39M	-151.80M	-144.93M	-95.20M	-91.20M	-45.61M
Net Income	-197.63M	-190.18M	-182.57M	-135.94M	-117.32M	-55.01M
Balance Sheet
Total Assets	2.22B	1.18B	941.21M	989.12M	980.85M	187.87M
Cash, Cash Equivalents and Short-Term Investments	976.74M	418.99M	244.77M	471.79M	690.96M	52.79M
Total Debt	516.62M	468.42M	176.69M	152.78M	128.43M	27.30M
Total Liabilities	940.41M	801.89M	386.67M	315.92M	282.40M	354.58M
Stockholders Equity	1.28B	382.45M	554.54M	673.21M	698.45M	-166.71M
Cash Flow
Free Cash Flow	-231.56M	-115.98M	-153.57M	-148.95M	-97.49M	-52.88M
Operating Cash Flow	-103.38M	-48.89M	-98.87M	-106.54M	-71.79M	-27.76M
Investing Cash Flow	-261.18M	-98.33M	12.02M	-346.08M	-92.13M	-37.33M
Financing Cash Flow	881.92M	256.68M	7.37M	2.04M	799.94M	21.48M

Rocket Lab USA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RKLB, the sentiment is Negative. The current price of 41.93 is below the 20-day moving average (MA) of 48.99, below the 50-day MA of 54.79, and above the 200-day MA of 37.05, indicating a neutral trend. The MACD of -4.63 indicates Positive momentum. The RSI at 33.98 is Neutral, neither overbought nor oversold. The STOCH value of 38.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RKLB.

Rocket Lab USA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PL	53 Neutral	$3.61B	―	-19.90%	―	11.33%	35.92%
RKLB	47 Neutral	$22.40B	―	-23.24%	―	52.42%	-1.33%
LUNR	44 Neutral	$1.67B	―	―	―	8.07%	33.37%
EVEX	43 Neutral	$1.31B	―	-115.63%	―	―	-33.69%
RDW	41 Neutral	$886.86M	―	-50.08%	―	-0.63%	-163.11%

Rocket Lab USA Corporate Events

Rocket Lab Reports Record Q3 2025 Revenue Growth

Rocket Lab announced its third-quarter 2025 financial results, reporting a record quarterly revenue of $155 million, marking a 48% year-on-year growth. The company highlighted significant achievements including securing 17 Electron launch contracts, launching two HASTE missions, and acquiring Geost to enhance its capabilities in U.S. national security. Rocket Lab also opened Launch Complex 3 for its Neutron rocket and maintains a strong financial position with over $1 billion in liquidity, setting the stage for continued growth and strategic acquisitions.

The most recent analyst rating on (RKLB) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Rocket Lab USA stock, see the RKLB Stock Forecast page.

Rocket Lab USA Holds Annual Stockholders Meeting

On August 25, 2025, Rocket Lab USA‘s Compensation Committee adopted a Senior Executive Cash Incentive Bonus Plan, which ties cash bonuses to the achievement of specific performance targets. This plan aims to align executive performance with corporate goals and operational success. Additionally, on August 27, 2025, Rocket Lab held its Annual Meeting of Stockholders, where four proposals were considered. Notably, three directors were elected, and the appointment of Deloitte & Touche LLP as the independent auditor was ratified. However, a proposed amendment to eliminate a pass-through voting provision was not approved.

The most recent analyst rating on (RKLB) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Rocket Lab USA stock, see the RKLB Stock Forecast page.