Rocket Lab posts record revenue, eyes space data centres as next frontier

Rocket Lab just posted its strongest quarter yet, pulling in US$234 million in revenue during the three months ending in June—a jump of more than 60 percent from the same period a year before, and enough to edge past what Wall Street had been bracing for. The company's stock, though, has cooled considerably since May, when it briefly touched US$150 per share on the back of SpaceX's blockbuster public offering. It's still up five percent for the year, but the shine has worn off.

What's driving the momentum is a combination of near-term wins and longer-term bets. In the quarter alone, Rocket Lab signed US$437 million in new contracts for its Electron rocket and its larger Neutron vehicle, which the company is still developing. The real headline, though, came from the US Space Force: a US$266 million deal to conduct 18 suborbital launches, a contract so substantial it's forcing Rocket Lab to build twin launch pads in Alaska. When you add in US$581 million in space systems work, the company's total backlog swelled to US$2.4 billion—a 137 percent increase year-over-year. Cash on hand, bolstered by a fresh equity raise, climbed to US$2.2 billion from US$828.6 million twelve months earlier.

But the real story isn't about the Electron or even the Neutron, which remains on track for a maiden launch in Virginia sometime before the year ends, assuming no further delays. Sir Peter Beck, Rocket Lab's founder and chief executive, opened the earnings call not to celebrate the company's launch business but to talk about something far larger: the US$8 billion acquisition of Iridium, a satellite communications operator with 2.55 million commercial and government customers. The deal, structured as half cash and half stock, is expected to close in mid-2027. Iridium operates a global network providing broadband, satellite phones, maritime distress services, air traffic control systems, and GPS alternatives. In 2025, the company generated US$871 million in revenue and nearly US$495 million in operational profit before interest, taxes, depreciation, and amortization.

Beck framed the Iridium purchase as a transformation. "It will accelerate our future in space applications and evolve Rocket Lab into a fully integrated space powerhouse," he said. Some analysts believe the acquisition could push Rocket Lab into profitability even if Neutron faces another delay. Others see it as a direct challenge to SpaceX's Starlink dominance, especially as new competitors like Amazon and AST Space Mobile prepare to enter the market.

Yet Beck's most intriguing comments came when he was asked about data centres in space—facilities that would store and process information in orbit rather than on Earth. "I think it's a real opportunity," he said. "We're taking the opportunity seriously." The company has already acquired SolAero, a New Mexico-based maker of high-efficiency solar panels for satellites, and Beck signaled that Rocket Lab would be releasing new solar technology specifically designed for space-based data centre applications. The engineering challenges are substantial—heat dissipation in a vacuum remains unsolved—but Beck's willingness to invest in the concept suggests he sees it as a genuine frontier.

Rocket Lab is also expanding its footprint in Europe. The company announced a new German subsidiary aimed at scaling satellite and component manufacturing to provide what it calls "sovereign space capabilities" to the continent. This move coincides with the company's long-delayed closure of its US$155 million acquisition of Mynaric, a German maker of laser communications systems for satellites, a deal that had faced regulatory scrutiny.

Since the quarter ended, Rocket Lab has continued to accumulate contracts. Last week, the company was awarded a US$397 million contract under the US Air Force's Space-Based Airborne Moving Target Indicator programme. The company has also been hosting senior military officials, including the Chief of Space Operations for the US Space Force, signaling its deepening role in America's defence infrastructure.

Back home in New Zealand, Rocket Lab has become a cultural touchstone of sorts. On the Sharesies investment platform, which tracks retail shareholding across New Zealand and Australia, Rocket Lab displaced Air New Zealand in July to become the most widely held company. Nearly 70,000 Sharesies investors held shares in Rocket Lab by the end of June, compared with 23,000 who owned stakes in SpaceX. For a company that still hasn't turned a profit, the retail enthusiasm speaks to something beyond the numbers—a belief that Rocket Lab, and the space industry it represents, is reshaping what's possible.