What new opportunities does Iridium unlock, and how will Neutron launches be assigned to Iridium's constellation and other customers?

Iridium enables Rocket Lab to become a self-launching satellite provider, offering new capabilities to government and commercial customers. The company will juggle Neutron capacity between commercial, government (NSSL), and internal Iridium needs. “We need to obviously serve the commercial market. We need to make sure that we have some launches left for our government customer as we've been onboarded onto the NSSL program. And we also need to make sure we have capacity for ourselves because ultimately, our intention here will be to improve that constellation.”

What are the low-hanging fruits to accelerate Iridium's top-line growth?

Rocket Lab plans to supercharge Iridium's existing growth initiatives, particularly in PNT, and leverage the combined entity's enhanced credibility with government and commercial customers for mission-critical services. The focus from day one will be on growth. “But our focus is rightly so with the acquisition from day 1 will be growth, growth, growth.”

How will GHOST-enabled launches affect price per launch and cost structure compared to Electron or HASTE?

Pricing for GHOST-enabled HASTE missions will be consistent with current HASTE pricing. The company expects potential ASP upside for HASTE due to increasing demand, similar to Electron's historical trend. CapEx for Kodiak is relatively minor and partially funded by contracts. “I think you should look at pricing to be pretty consistent with what we've been showing on HASTE. I think overall, again, as this type of mission becomes more strategic and important... there'll be more demand for these types of things.”

RKLB

Rocket Lab (RKLB) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 10, 2026

Source: earnings call transcript

Executive summary

Rocket Lab Q2 FY26 — Record Revenue and Strategic Iridium Acquisition

Rocket Lab delivered record Q2 revenue driven by strong performance in both Launch Services and Space Systems, alongside significant new contract wins and a growing backlog. The company announced the strategic acquisition of Iridium, aiming to become a fully integrated space powerhouse with capabilities across launch, satellite manufacturing, and space applications. Neutron development continues with key milestones achieved, though cash consumption remains elevated due to ongoing investments.

Highlights

Achieved record Q2 revenue of $234 million, up 62% year-over-year.
Secured over $1 billion in new contracts in Q2 and post-quarter, including a record $266 million Space Force launch contract.
Ended the quarter with a record $2.36 billion in total backlog, including 90+ launches.
Successfully executed the VICTUS HAZE mission, setting new records for launch (16 hours 42 minutes) and satellite commissioning (38 hours).
Adjusted EBITDA loss of $8.8 million was well below the guidance range of $20 million to $26 million.

Concerns

GAAP operating cash flow was a use of $84.1 million in Q2, an increase from $50.3 million in Q1.
Non-GAAP free cash flow was a use of $110.1 million in Q2, an increase from $77.4 million in Q1.
GAAP EPS was a loss of $0.08 per share, a sequential decline from a loss of $0.07 per share in Q1.
Q3 FY26 GAAP gross margin is forecasted to range between 29% to 31%, a decrease from Q2's 36.1%.

Guidance & targets

Category	Target	Timeline	Confidence
Revenue	$250 million to $265 million high materiality	Q3 · FY26	High
GAAP Gross Margin	29% to 31% medium materiality	Q3 · FY26	High
Non-GAAP Gross Margin	35% to 37% medium materiality	Q3 · FY26	High
GAAP Operating Expenses	$143 million and $149 million medium materiality	Q3 · FY26	High
Non-GAAP Operating Expenses	$121 million and $127 million medium materiality	Q3 · FY26	High
Net Interest Income	$21 million low materiality	Q3 · FY26	High
Adjusted EBITDA Loss	$17 million and $23 million high materiality	Q3 · FY26	High
Basic Weighted Average Common Shares Outstanding	approximately 641 million shares low materiality	Q3 · FY26	High
Non-GAAP Free Cash Flow	negative, elevated levels high materiality	Q3 · FY26	High
Neutron First Launch	Q4 2026 high materiality	Q4 · FY26	Medium
Iridium Acquisition Completion	mid-2027 high materiality	mid-2027 · FY27	Medium
Adjusted EBITDA Positivity	in the quarter after Neutron's first successful test launch high materiality	post-Neutron first flight	High
Cash Flow Positivity	18 to 24 months after Adjusted EBITDA positivity high materiality	18-24 months post-Adjusted EBITDA positivity	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Space Systems Growth primarily driven by increased contribution from satellite manufacturing business and initial contribution from Mynaric acquisition. Contribution from satellite manufacturing business: increasedInitial contribution from Mynaric acquisition	$189.5 million	—	38.6%	—
Launch Services Decline primarily attributable to a shift in revenue mix between point-in-time Electron business and overtime HASTE business, with significant HASTE revenue recognized in prior periods. Revenue mix shift: point-in-time Electron vs. overtime HASTE	$44.6 million	—	30% decrease	—

RKLB operating KPIs by quarter

RKLB operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Backlog	$1.07B We ended Q4 2024 with $1.07 billion of total backlog with Launch backlog of $386 million and Space Systems backlog of $681 million. Source: earnings call transcript	~$1B We ended Q2 2025 with approximately $1 billion of total backlog with launch backlog representing approximately 41% of this and Space Systems 59%. Source: earnings call transcript	~$1.1B We ended Q3 2025 with approximately $1.1 billion in total backlog, with launch backlog accounting for approximately 47% and Space Systems representing 53%. Source: earnings call transcript	$1.85B At the end of Q4, our backlog sat at a record $1.85 billion, which is up 73% from the same time in 2024. Source: earnings call transcript	~$2.2B We ended Q1 2026 with approximately $2.2 billion in total backlog, with launch backlog accounting for approximately 41.5% and Space Systems representing 58.5%. Source: earnings call transcript	$2.36B We ended the quarter with a $2.36 billion in backlog and across launch in Space Systems, we've signed more than $1 billion in new contracts across Q2 and the period since the quarter closed. Source: earnings call transcript	—
Employees production	1,004 Relatedly, we ended Q4 with production-related headcount of 1,004 heads, up 40 from the prior quarter. Source: earnings call transcript	1,150 Relatedly, we ended Q2 with production-related headcount of 1,150, up 62% from the prior quarter. Source: earnings call transcript	1,198 We ended Q3 with production-related head count of 1,198, up 48% in the prior quarter. Source: earnings call transcript	1,244 Relatedly, we ended Q4 with production-related headcount of 1,244, up 46 from the prior quarter. Source: earnings call transcript	1,448 Relatedly, we ended Q1 with production-related headcount of 1,448, up 250 from the prior quarter, largely driven by a transition of dedicated R&D headcount from the first Neutron test flight to our production teams related to future revenue-generating missions as well as headcount ramps related to our recent Geost and PCL acquisitions. Source: earnings call transcript	1,688 Relatedly, we ended Q2 with production related head count of 1,688, up 240 for the prior quarter. Source: earnings call transcript	+16.6%
Employees R&D	828 Q4 ending R&D headcount was 828, representing an increase of 52 from the prior quarter. Source: earnings call transcript	935 Q2 ending R&D head count was 935, representing an increase of 12% from the prior quarter. Source: earnings call transcript	1,019 Q3 R&D headcount was 1,019, representing an increase of 84 from the prior quarter. Source: earnings call transcript	1,012 Q4 ending R&D head count was 1,012, an representing a decrease of 7% from the prior quarter. Source: earnings call transcript	949 Q1 ending R&D headcount was 949, representing a decrease of 70 from the prior quarter. Source: earnings call transcript	1,087 Q2 ending R&D head count was 1,087, representing an increase of 138 for the prior quarter. Source: earnings call transcript	+14.5%
Employees SG&A	329 Q4 ending SG&A headcount was 329, representing an increase of 29 from the prior quarter. Source: earnings call transcript	343 Q2 ending SG&A head count was 343, representing an increase of 11% from the prior quarter. Source: earnings call transcript	385 Q3 ending SG&A headcount was 385, representing an increase of 42 from the prior quarter, with the majority of those coming from the closing of the GEOs acquisition. Source: earnings call transcript	389 Q4 ending SG&A head count was 389, representing an increase of 4% from the prior quarter. Source: earnings call transcript	381 Q1 ending SG&A headcount was 381, representing a decrease of 4 from the prior quarter. Source: earnings call transcript	442 Q2 ending SG&A head count was 442, representing an increase of 61 from the prior quarter. Source: earnings call transcript	+16%
Employees	2,161 In summary, total fourth quarter headcount was 2,161, up 121 heads from the prior quarter. Source: earnings call transcript	2,420 In summary, total second quarter head count was 2,420, up 85% from the prior quarter. Source: earnings call transcript	2,602 In summary, total headcount at the end of the third quarter was 2,602, up 174 heads from the prior quarter. Source: earnings call transcript	2,645 In summary, total head count at the end of the fourth quarter was 2,645 up 43 heads from the prior quarter. Source: earnings call transcript	2,778 In summary, total headcount at the end of the first quarter was 2,778, up 176 heads from the prior quarter. Source: earnings call transcript	3,217 In summary, total headcount at the end of the second quarter was 3,217, up 439 heads from the prior quarter. Source: earnings call transcript	+15.8%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Total Backlog $2.36 billion Q2 FY26

approximately 45.5% to convert into revenue within the next 12 months

Launch Backlog 90-plus launches post Q2 FY26

grew from 26 new launches

accounting for approximately 40% of total backlog

Space Systems Backlog 60% Q2 FY26

representing 60% of total backlog

Product announcements

Product	Type	Timeline	Details
Flatellite	launch	—
GHOST (Containerized Deployable Launch Site Technology)	launch	—

Deals & partnerships

Iridium Communications Combine Rocket Lab's launch and satellite manufacturing with Iridium's global satellite communications network and spectrum.

Rocket Lab will become a self-launching Tier 1 space power. Transaction requires Iridium stockholder approval and regulatory review.

Mynaric Deepen roots in Europe, establish regional hub for constellation class manufacturing and full-scale spacecraft assembly.

Official establishment of Rocket Lab, Germany. Aims to streamline, scale production, and introduce new capabilities.

Motiv Strategic acquisition to accelerate future in space applications.

Mentioned as a milestone acquisition in Q2.

Space Force Contract for up to 18 suborbital missions. $266 million

Multiyear, multi-launch Department award deal for suborbital missions. Launches mostly from Kodiak, Alaska.

Space Force Contract to build and launch multiple Flatellite spacecraft for the space-based airborne moving target indicator program. $397 million

Neutron will be launching this mission. High priority program for the Department of War.

Space Systems Command Prime contract to build two GEO satellites for space domain awareness. part of two deals totaling more than $160 million

Will incorporate Heimdall payload from GEOST. First step into government geostationary satellite market.

NASA Contract for three Electron launches across two missions.

Launches scheduled for next year.

QPS Contract for another three Electron launches.

Third bulk buy in less than a year.

Confidential defense prime Contract for a pair of HASTE launches.

Launches in 2027. HASTE rapid repeatable flight cadence was the clincher.

Kepler Communications Dedicated Neutron launch to deliver satellites to lower earth orbit.

First time Kepler has booked an entire rocket for their constellation. Mission will expand network capacity with on-orbit compute, optical comms, and hosted payloads.

Capital programs

Neutron Development and Production Scaling underway

Period spend: $26 million

Benefit:return on investment recovery barge as well as launch and test infrastructure investments

As we progress towards Neutron's first flight, we expect capital expenditures to remain elevated as we invest in testing, production scaling and infrastructure expansion.

Kodiak Launch Site Deployment (GHOST) underway

Funding: funded under that agreement to a large part

Benefit:two new pads in Alaska; unmatched geographical flexibility for all mission types

The two new pads in Alaska will be deployed using our GHOST containerized deployable launch site technology.

Risks & headwinds

Elevated cash consumption Q2 FY26, expected to remain elevated in Q3 FY26.

GAAP operating cash flow use of $84.1 million in Q2 FY26 (vs $50.3 million in Q1 FY26); Non-GAAP free cash flow use of $110.1 million in Q2 FY26 (vs $77.4 million in Q1 FY26).

Mitigation:Proceeds from ATM equity offering ($1.08 billion) to support growth initiatives; future adjusted EBITDA and cash flow positivity tied to Neutron's success.

Gross margin pressure from Space Systems mix Q3 FY26

Q3 FY26 GAAP gross margin expected 29%-31% (down from Q2's 36.1%); Non-GAAP gross margin expected 35%-37% (down from Q2's 41.5%).

Mitigation:Expect a beneficial remixing impact on gross margins beyond Q3; Mynaric integration synergies and scale advantages.

Neutron development complexity and schedule risk Q4 2026 (first launch target)

Window for an end year launch is narrowing for Neutron.

Mitigation:Balancing timing of first launch with ensuring readiness for full-scale production and high-cadence launch; focus on reusability and robust qualification criteria.

Supply chain challenges for Mynaric Q2 FY26 and subsequent quarters.

Mynaric's gross margins initially lower; required replenishment of supply chain.

Mitigation:Decisive action taken to understand margin improvement needs; increased volumes expected; cost efficiencies.

What to watch in Q3 FY26

Neutron First Launch

Q4 2026

Current Target delivery of Neutron to the pad in Q4 2026

Target Successful first flight

Why it matters

Successful first launch is a major de-risking event and a prerequisite for adjusted EBITDA positivity and future cash flow.

Production currently lines up with the target delivery of Neutron to the pad in Q4 2026. While the window for an end year launch is narrowing, the work we're doing now is about risk trading, balancing the timing of our first launch against how quickly and seamlessly we can scale at tenth launch.

Find out whether RKLB delivers this. Inve re-checks your case every morning.

Q&A highlights

How quickly can Neutron scale to 10 launches, and will ASPs increase given market constraints?

Management is focused on achieving flight 10 quickly through robust reusability, balancing first flight timing with full-scale production readiness. ASPs for Neutron are expected to see upside due to high demand and market constraints, with current pricing at $50M-$55M.

“I think right now, the view is that we see more upside to ASPs and certainly anything that are down or sideways.”

asked by Andres Sheppard-Slinger · answered by Adam Spice

2 min read 5 chapters

Detailed narrative

Strategic Vertical Integration with Iridium

Rocket Lab's planned acquisition of Iridium Communications is a pivotal move to integrate launch, satellite manufacturing, and space applications. This will enable Rocket Lab to become a self-launching Tier 1 space power, leveraging Iridium's existing constellation and L-band spectrum for critical communications, with plans for expansion into IoT, direct-to-device, and PNT defense markets.

The transaction is expected to close in mid-2027, pending regulatory and shareholder approvals, and is seen as a starting point for further applications plays.

Space Systems Growth and Diversification

The Space Systems segment saw significant contract wins, including a $397 million contract for Flatellite spacecraft for the Space Force's airborne moving target indicator program, and over $160 million for three geostationary satellites. The successful VICTUS HAZE mission demonstrated Rocket Lab's end-to-end capabilities in delivering rockets, spacecraft, and orbit operations with record-breaking speed for the Space Force, highlighting the company's advanced capabilities for national security programs.

Neutron Development Progress and Demand

Neutron's development is progressing with significant testing across Stage 1, Stage 2, the thrust module, and Archimedes engines, with over 400 hot fires completed. The company is balancing the timing of the first launch (targeting Q4 2026) with ensuring the system is ready for full-scale production and high-cadence launch, focusing on reusability.

Demand for early Neutron flights is high, with new contracts from the Space Force and Kepler Communications, despite the vehicle not yet having flown.

Launch Services Demand and GHOST Technology

Launch Services experienced extreme demand, securing over $437 million in new contracts, including a record $266 million contract for up to 18 suborbital missions for the Space Force. The introduction of GHOST containerized deployable launch site technology aims to provide rapid, mobile launch capabilities, initially for the new Kodiak, Alaska pads, addressing customer needs for flexible launch locations for missile defense testing and sovereign orbital launch capability.

European Expansion and Market Opportunity

Rocket Lab is deepening its roots in Europe with the official establishment of Rocket Lab Germany, following the Mynaric acquisition. This aims to create a regional hub for constellation-class manufacturing and spacecraft assembly, integration, and test, addressing Europe's launch deficit and providing domestic strength in the rapidly evolving space sector. The company sees significant opportunities in Europe due to nations seeking sovereignty in space capabilities.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.