Rocket Lab Buys Iridium in $870 Million Revenue Bet as Q2 Sales Jump 62%
Updated
Updated · Yahoo Finance · Aug 11
Rocket Lab Buys Iridium in $870 Million Revenue Bet as Q2 Sales Jump 62%
3 articles · Updated · Yahoo Finance · Aug 11
Summary
$234 million in Q2 revenue marked a record for Rocket Lab, which paired the earnings report with a planned acquisition of Iridium Communications that would add a 66-satellite constellation and 2.5 million subscribers.
More than $1 billion in new contracts signed in and after Q2 lifted backlog to $2.36 billion, led by a record $266 million Space Force award for up to 18 suborbital missions.
Neutron development remained a key growth driver, with 400-plus Archimedes engine hot fires completed and the rocket still on track for pad delivery in Q4 2026 amid strong pre-launch demand.
A GAAP loss of $0.08 a share and weaker Q3 margin guidance underscored the cost of expansion, with integration expenses, product mix shifts and Neutron spending expected to keep free cash flow negative.
The Iridium deal is not expected to close until mid-2027, leaving Rocket Lab to prove that its push toward a fully integrated space business can offset near-term margin pressure.