Rocket Lab USA, Inc.

The $1.85B backlog at end-FY2025 covers approximately 3x annual revenue, with roughly 37% expected to convert over the next 12 months and U.S. government SDA contracts providing multi-year structural visibility. A meaningful portion of that backlog represents recently awarded contracts rather than a long retention history across multiple cycles, which limits confidence in full anchor-level predictability.

Rocket Lab operates two segments: Space Systems generated approximately $403M of FY2025 revenue (roughly 67%) and Launch Services approximately $199M (33%), both tied to the space industry. The two lines serve different customer needs and revenue profiles but are not from uncorrelated end markets, keeping diversification at a sector-average level with no segment below 30% and none above 70%.

Revenue is concentrated almost entirely in the United States, driven by SDA and other U.S. government defense programs that constitute the large majority of both backlog and FY2025 recognized revenue. Manufacturing operations in New Zealand do not materially alter the revenue geography, and international commercial customers represent a small fraction of the business.

Gross margin reached 38% GAAP in Q4 2025, improving as Space Systems scales, but operating margins remain deeply negative (approximately -38% in FY2025) due to Neutron rocket development spending. The heavy capex and R&D investment for Neutron offsets operating leverage gains from the established Electron and Space Systems platform.

The Space Systems segment generates revenue from multi-year, mission-critical U.S. government contracts for spacecraft and satellite components, including long-duration SDA programs that represent a structurally sticky customer relationship. Launch services are more transactional, but the mix shift toward government prime contracts has meaningfully improved the overall quality of the revenue base.