Rocket Lab FY 2025 results: revenue climbs while losses continue

Rocket Lab (RKLB) has reported another year of rapid top line expansion, with FY 2025 Q4 revenue at US$179.7 million and a quarterly loss of US$52.9 million, equal to basic EPS of a US$0.09 loss. The company’s revenue increased from US$132.4 million in FY 2024 Q4 to US$179.7 million in FY 2025 Q4, while quarterly EPS moved from a US$0.10 loss to a US$0.09 loss over the same period. This points to strong scaling of revenue alongside continued significant investment flowing through the income statement. For investors, the key takeaway is that revenue growth is doing the heavy lifting while margins remain firmly in loss-making territory.

See our full analysis for Rocket Lab.

With the headline numbers on the table, the next step is to weigh this revenue growth and the ongoing losses against the key narratives around Rocket Lab's path to profitability, the balance of risks and rewards, and what the market has been pricing in.

TTM losses near US$200 million despite strong revenue base

• On a trailing 12 month basis to FY 2025 Q4, Rocket Lab generated US$601.8 million of revenue and reported a net loss of US$198.2 million, which equates to a basic EPS loss of US$0.37.
• Bulls point out that analysts expect earnings to grow about 59.6% per year and move Rocket Lab into profitability within three years, yet the latest 12 month loss of US$198.2 million and quarterly losses ranging from US$18.3 million to US$66.4 million in FY 2025 show that the current business is still absorbing a large amount of capital.
  • Supporters of the bullish view focus on the revenue growth outlook of roughly 24.9% per year versus 11.5% for the broader US market. However, the five year trend of losses widening about 19.6% per year underlines how much improvement is required for margins to reach the positive 10.4% to 14.4% levels some forecasts reference.
  • The gap between forecast earnings of up to US$321.6 million in some bullish scenarios and the present US$198.2 million loss is wide, so these FY 2025 numbers are a useful check on how much of that turnaround still sits in the future rather than in the current income statement.

On these figures, bulls are effectively betting that current losses convert into the kind of earnings power outlined in their optimistic scenario rather than becoming a long term feature of the business 🐂 Rocket Lab Bull Case.

High valuation multiples despite ongoing unprofitability

• Rocket Lab currently trades at a P/B of 26.4x, compared with a peer average of 21.6x and 4x for the broader US Aerospace & Defense industry, while the stock price of US$78.58 sits well above the single allowed analyst consensus target of US$87.56 if that target is achieved.
• Bears highlight that this relatively rich P/B multiple is being supported by expectations of future earnings rather than present profitability, since the company is still loss making on both a quarterly basis and on the trailing 12 month view, with analysts in the more cautious camp still assuming only modest margins of about 1.2% in some scenarios.
  • Critics also point to historical widening of losses at roughly 19.6% per year over five years, which they argue sits uneasily next to scenarios that require price to future earnings multiples that are very large compared with the current US Aerospace & Defense P/E of 38.7x to justify higher price targets.
  • The combination of a high P/B, a trailing 12 month net loss of US$198.2 million, and reliance on future margin expansion to between about 1.2% and 14.4% in different forecasts is central to the bearish concern that the current valuation already bakes in a lot of good news.

For investors taking the cautious view, the present mix of a high P/B multiple and persistent losses is a reminder to stress test how sensitive any thesis is to slower margin progress or lower future earnings 🐻 Rocket Lab Bear Case.

Revenue growth versus dilution and insider selling

• Over the last 12 months, revenue is reported to be growing at about 24.9% per year versus a US market benchmark of 11.5% per year, while at the same time shareholders have experienced dilution over the past year and there has been significant insider selling in the most recent three months.
• Analysts' consensus narrative often treats the faster revenue growth and expected move to profitability as the main attraction, yet the mix of ongoing net losses near US$200 million, new shares issued, and insider selling creates a counterpoint that investors need to weigh carefully.
  • The higher growth rate compared with the wider market aligns with the idea of a long runway of demand, but the fact that the business has required additional equity capital in the last year suggests that internal cash generation has not yet caught up with that growth.
  • Short term share price volatility alongside insider selling and dilution means you are not just judging growth, but also how comfortable you are with ownership changes while the company works through a period of unprofitability.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Rocket Lab on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With this mix of optimism and concern in mind, now is a good time to review the numbers yourself and decide where you stand, starting with 1 key reward and 3 important warning signs

Explore Alternatives

Rocket Lab combines strong revenue with a net loss of US$198.2 million, a P/B of 26.4x, dilution, and insider selling, which raises clear questions about risk.

If that mix of high valuation and ongoing losses feels uncomfortable, it makes sense to compare it with companies screened for resilience using the 72 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.