By nearly every operating measure, Rocket Lab (NASDAQ:RKLB) is delivering. The space company‘s second-quarter revenue was a record. Its backlog was a record. Its third-quarter guidance calls for another record. And in June, the company announced an $8 billion agreement to acquire satellite operator Iridium Communications (NASDAQ:IRDM).
The stock reflects all of it. Even at about $73 as of this writing (roughly half its 52-week high of $151), Rocket Lab carries a market value near $45 billion. That is about 59 times the roughly $769 million of revenue the company generated over the four quarters through June 30, based on its last two earnings reports.
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To me, that is the figure to hold onto. Because the rocket anchoring the growth story behind that multiple, the medium-lift Neutron, has never flown.
Image source: The Motley Fool.
Records everywhere but the bottom line
Second-quarter revenue rose 62% year over year to $234 million, which was $34 million above the prior quarter’s record. Backlog reached $2.36 billion — up 137% year over year, and up from $1.85 billion at the end of 2025. And founder and CEO Sir Peter Beck said the company had already signed more than $1 billion in new contracts across launch and space systems since the quarter closed.
Guidance points the same direction. Management expects third-quarter revenue of $250 million to $265 million, which would be another record. And 2025’s full-year revenue of $602 million grew 38% from 2024. The growth isn’t cooling.
Profitability is the missing piece. Rocket Lab posted a $94 million net loss for the first half of 2026, and its guidance calls for a third-quarter adjusted loss of $17 million to $23 million in earnings before interest, taxes, depreciation, and amortization (EBITDA), with gross margins of 29% to 31% under generally accepted accounting principles (GAAP).
About $2.1 billion of cash and equivalents gives the company plenty of room to keep investing. But this remains a money-losing business valued at $45 billion.
Neutron is the revenue the price assumes
For the growth stock to trade at even 10 times revenue (still arguably a premium price for a hardware-heavy business) with shares simply holding their current value, revenue would need to reach about $4.5 billion — nearly six times the current trailing figure.
