RKLB Stock Forecast & Price Target

Rocket Lab Corp has demonstrated strong financial performance, with third-quarter revenue exceeding prior guidance, showing a year-over-year increase of 48%, and non-GAAP gross margins improving significantly to 41.9%, reflecting a favorable product mix and higher average selling prices. The company ended the quarter with substantial liquidity, reporting current cash and equivalents of $977 million, an increase from $688 million in the previous quarter and $442 million year-over-year, indicating robust financial health. Additionally, the increased demand for its solar arrays and the anticipated operational ramp-up for the Neutron launch vehicle in 2026 further underpin Rocket Lab's positive outlook for future growth and profitability in the space sector.

Rocket Lab Corp experienced a notable decline in its Launch Services revenue, which accounted for 26% of total sales, with a year-over-year increase of 95% but a sequential decline of 12% due to fewer successful launches and one customer cancellation. The company's Space Systems backlog decreased by 19% year-over-year, implying potential challenges in maintaining a robust pipeline, despite a 58% growth in the launch backlog. Furthermore, Q3 operating expenses exceeded prior estimates significantly, coupled with an anticipated adjusted EBITDA loss of $23 million to $29 million, indicating mounting financial pressures that could hinder future growth prospects.