RKLB Stock Forecast & Price Target

Rocket Lab Corp is demonstrating robust performance with a significant increase in third-quarter revenue, surpassing the high-end of previous guidance and achieving a year-over-year growth of 48%. The company's non-GAAP gross margins have improved notably, rising to 41.9% due to higher average selling prices (ASPs), an increased launch cadence, and a favorable mix within its space systems segment. Additionally, Rocket Lab's strong cash position, growing from $442 million a year ago to $977 million, underscores its financial stability and capacity for future growth, particularly in anticipation of its Neutron launches set for 2026.

Rocket Lab Corp experienced a notable decline in its Launch Services segment, with sales increasing by 95% year-over-year but decreasing 12% quarter-over-quarter, attributed to a reduction in total launches and a customer cancellation. The company is also facing a concerning increase in operating expenses, which reached $98.1 million in Q3, surpassing previous estimates and guidance, indicating potential inefficiencies in cost management. Additionally, the financial outlook for Q4 suggests a projected adjusted EBITDA loss ranging from $23 million to $29 million, raising concerns about profitability amidst risks such as development delays and increasing competition.