Rocket Lab's second-quarter backlog grew to $2.36 billion, up 137 percent year-over-year, as the company announced a landmark acquisition of satellite operator Iridium and introduced a new globally-deployable launch system called GHOST.
Revenue for the quarter reached $234 million, exceeding analyst estimates of $231 million and climbing 62 percent from the prior year. The company posted a net loss of $49.3 million on non-GAAP gross margins of 41.5 percent. Earnings per share came to negative $0.08, slightly worse than the negative $0.07 consensus estimate.
Rocket Lab guided third-quarter revenue to between $250 million and $265 million, above the $239 million consensus, while forecasting a non-GAAP EBITDA loss between $17 million and $23 million versus an estimated loss of $11.8 million. The company said it had signed more than $1 billion in new contracts across launch and space systems during the quarter, on top of the existing backlog.
The Iridium acquisition, announced in June, gives Rocket Lab control of a satellite operator. Iridium operates a constellation of 75 active satellites providing voice and data coverage globally. The deal would allow Rocket Lab to control both launch capacity and payload, reducing dependency on external customers for revenue.
GHOST, the newly unveiled system, is designed to launch suborbital and orbital missions from multiple locations. The company has marketed it as a response to growing demand for on-demand smallsat and hypersonic testing missions, a market segment traditionally underserved by conventional launch providers.
Rocket Lab's guidance assumes non-GAAP operating expenses between $121 million and $127 million in Q3, compared to GAAP operating expenses of $143 million to $149 million. The company carries 641 million shares outstanding and reported $21 million in net interest income for the quarter, benefiting from its cash position.
The backlog grew 137 percent while revenue grew 62 percent, a divergence that typically occurs when sales cycles lengthen in aerospace and existing orders take time to execute. Rocket Lab remains unprofitable on a GAAP basis and has not reached sustained positive EBITDA, placing it among capital-intensive launch providers still in cash-burn mode despite record order books.
Rocket Lab needs to demonstrate margin expansion and working capital discipline to justify the capital requirements of integrating Iridium's operations while scaling launch capacity. The company's next earnings report will show whether the acquisition and GHOST system are narrowing the gap between backlog growth and actual revenue delivery.
