Rocket Lab projects Q1 revenue of $185–$200M with improved margins amid heavy Neutron development costs.

Rocket Lab forecasts Q1 revenue between $185 million and $200 million, with GAAP margins of 34%–36% and improving non-GAAP margins. The company’s FY25 backlog reached $1.85 billion, driven mainly by Space Systems contracts, providing multi-year revenue visibility and an expected 37% conversion in FY26. Cost per launch has decreased to $4.8 million from $5.7 million due to improved launch cadence and scale efficiencies. However, a net loss of $198.2 million and negative operating cash flow of $165.5 million reflect significant investments in Neutron rocket development and infrastructure. The Neutron launch delay to Q4 FY26 extends cash burn, with early launches expected to operate at a loss before economies of scale improve profitability.