RKLB Stock Forecast & Price Target

Rocket Lab Corp is experiencing significant growth in its financial performance, evidenced by a 48% year-over-year increase in revenue for the third quarter, which surpassed previous guidance expectations. The company has demonstrated improved non-GAAP gross margins of 41.9%, attributed to a favorable product mix and higher average selling prices, as well as increased launch cadence contributing to better overhead absorption. With current cash, cash equivalents, and marketable securities reaching $977 million, up from $688 million in the prior quarter, Rocket Lab is well-positioned for sustained operational investments and growth in its launch services and space systems segments.

Rocket Lab Corp has reported a significant sequential decline in its Launch Services revenue, which constitutes 26% of total sales, exhibiting a 12% drop quarter-over-quarter despite a year-over-year increase of 95%. The company experienced a reduction in the number of successful launches, dropping from five to four, coupled with a 19% year-over-year decline in Space Systems backlog, indicating potential challenges in securing future contracts. Furthermore, the financial outlook for Q4 2025 reveals expected revenues between $170 million and $180 million, with an adjusted EBITDA loss projected between $23 million and $29 million, highlighting concerns over profitability amidst rising operating expenses that surpassed earlier estimates.