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People have become accustomed to fickle governments pushing the frontier of space exploration. This is why both Intuitive Machines (LUNR) and Rocket Lab (RKLB) are a breath of fresh air, despite still relying heavily on government contracts.
Rocket Lab, in particular, has gained the reputation of being the most reliable small-launch provider in the world. Only in the shadow of SpaceX (not publicly traded), the company completed 76 Electron launches as of December 9, 2025.
Judging by November’s Q3 earnings report, Rocket Lab is finishing up 2025 as its most successful year yet, but this may only be the beginning of its transition from a niche launch specialist to a full-spectrum space infrastructure company.
Rocket Lab’s Impressive Technical Achievements
For 2025, Rocket Lab should complete 20 launches in total, beating its record by four missions from 2024. Not only did Rocket Lab increase its launch cadence 60% year-over-year during 2024, but the company also had a 100% mission success rate. During December, Rocket Lab is finishing the year with two RAISE And Shine launches in New Zealand to deploy RAISE-4 satellites for Japan’s private and public interests and research institutions.
The second Electron launch for Japan Aerospace Exploration Agency (JAXA) is scheduled for December 12th launch window, making it the 20th mission. Earlier in November, the company demonstrated robust agility by deploying two launches within a 48-hour window, employing its full capacity in two hemispheres: Launch Complex 1 in New Zealand and Launch Complex 2 in Virginia.
Over the year, they accounted for three back-to-back launches within such a short time frame. Given this track record, it is then no surprise that Rocket Lab accumulated a record-setting backlog of 49 contracted missions up to Q3, with 17 added only in that quarter.
In addition to the aforementioned two launch complexes, Rocket Lab opened Launch Complex 3 (LC-3) for its medium-sized Neutron rockets, on Wallops Island, Virginia, still in the stage of final pre-launch testing. This one is, of course, adjacent to the existing LC-2.
As we noted previously, Rocket Lab’s Neutron rockets puts the company in direct competition with SpaceX’s Falcon 9 rockets in the medium-sized category with up to 13,000 kg payload capacity. The first such rocket should follow after Q1 2026, provided successful qualification testing.
As recently as this Monday, Neutron’s fairing halves dubbed the “Hungry Hippo” completed qualification testing and are in the process of being delivered to Virginia’s LC-3. Like Falcon 9, Neutron is a reusable rocket
“A rocket like Neutron has never been built before, and we’re doing it at a pace and price point that’s going to bring the innovation and competition needed in today’s industry.”
Specifically, Hungry Hippo’s two fairing halves stay attached to the rocket during launch, open briefly to release the second stage, then close again for the rocket’s return and reuse. As D’Mello noted, this is the first time a commercial rocket will reuse its fairing as a part of a single returning booster, in order to reduce launch costs and simplify operations.
Rocket Lab’s Financials Examined
In Q3 earnings, Rocket Lab reported 48% year-over-year revenue growth to $50.3 million, or 7.3% higher from the prior quarter. Between Q2 and Q3, the company’s backlog increased from $1 billion to $1.1 billion, with the Space Systems division comprising 53% of the backlog, while the rest was the Launch division.
Commercial contracts are now dominating orders, rising from 53% to 57% between the quarters. Owing to the acquisition of satellite sensor maker Geost worth $275 million in August, Rocket Lab’s operating expenses increased by $10.3 million from Q2, with R&D making the bulk of the costs at $70.7 million out of total $116.3 million.
Of course, capex needed for Neutron deployment put additional pressure, by $13.9 million. As a result, Rocket Lab’s free cash flow suffered a depletion, remaining in the negative zone of $45.9 million. Likewise, the company’s earnings-per-share (EPS) is still negative $0.03, although a significant improvement from negative $0.13 in Q2.
Overall, Rocket Lab had a 37% gross margin in Q3 (GAAP), with an outlook to improve up to 39% in Q4, followed by an expected revenue uptick within the $170-$180 million range.
RKLB Price Targets
Year-to-date, RKLB stock is up 114%, one of many equities to drastically outperform Bitcoin, which is still down 4% YTD. It just goes to show that while digital assets continue to wrestle with cyclical pressures, the market still has room to rerate companies delivering tangible technological progress.
It is fair to say that the successful Neutron deployment will have significant consequences for Rocket Lab’s long-term valuation, opening the door to higher-margin missions and larger commercial constellations alongside deeper governmental partnerships.
At the present price of $53.43 per share, this makes RKLB still attractive given the Wall Street Journal’s average price target of $65.67. At the moment, no analysts are bearish, with the bottom outlook not far off at $47, while the ceiling price target for RKLB stock is $83 per share.
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