$Rocket Lab(RKLB.US)

The highly anticipated earnings report is finally out. I'll just highlight some key points.

1. Full-year revenue hit a new high, up 38% year-over-year, reaching $601.8 million.

2. EPS slightly beat expectations, at -$0.09 (expected -$0.1).

3. Backlog surged 73% year-over-year. This is very important as it indicates a certain level of certainty for its future.

4. Full-year GAAP gross margin was 34.4%, compared to 26.6% in FY 2024. Peter Beck attributed this to "continued execution," primarily due to increased launch frequency of the Electron rocket, improvements in average selling price (ASP), and dilution of overall operating costs.

5. Neutron is delayed to Q4 2026, previously H1 2026. Honestly, this is a bit beyond my expectations. If it can indeed test launch and succeed in Q4, it would undoubtedly be a huge positive, proving that RKLB remains the most competitive commercial space stock besides SpaceX, with no other alternative.

Furthermore, the guidance for the next quarter is average, with the explanation that R&D investment to advance Neutron will continue to increase.

Therefore, the market may react negatively to the Neutron delay. However, considering the revenue beat and impressive financial metrics, the downside is limited. Moreover, all indicators are improving. As long as the broader market doesn't have issues and liquidity gradually recovers, the stock price performance this quarter probably won't be bad.

⬆️ Personal thoughts, not investment advice.