RKLB

Rocket Lab is a genuinely improving business operationally. Revenue compounded from $62M (FY2021) to $602M (FY2025), and FY2025 grew +38% with gross profit up +78% to $207M, lifting gross margin to 34.4% — evidence the Electron franchise and the Space Systems segment are scaling with better unit economics. The balance sheet is the strongest it has ever been: $829M cash (+206%), equity up +350% to $1.72B, and essentially no debt (long-term debt of $1.72M, zero current portion), giving liabilities/equity of just 0.35x. The Dec 17, 2025 Space Development Agency Tranche 3 award ($816M potential value) and the Neutron medium-lift program give a credible forward growth and contract story.

But the financials below the gross line are deteriorating, not improving. Net loss widened again to -$198M, operating income fell -20.6% to -$229M, and — most importantly — operating cash flow swung to -$166M (a -238.6% reversal) while capex more than doubled to $156M, so the company is burning cash on both lines. R&D rose +55% to $271M to fund Neutron, an expense that will persist before it pays off. The MD&A and Risk Factors are explicit that growth rates 'may not be indicative of future growth,' that profitability depends on successfully developing Neutron and 'achieving operating efficiencies,' and that operating expenses are expected to keep rising. Net margin is -32.9% and ROE -11.5%; the accumulated deficit is -$1.01B.