Rocket Lab Earnings Review: Why I'm Buying the Neutron Delay Dip on Rocket Lab

Rocket Lab (RKLB) just dropped an earnings report that confused the algorithms but should have every growth investor salivating.

If you just read the headlines, you saw "Neutron Delayed to 2026" and maybe panicked. But if you actually opened the 10-Q and looked at the P&L, you saw something entirely different: Operating Leverage.

We aren't just looking at a rocket launch company anymore. We are looking at a vertically integrated space industrial giant in the making. They posted $155.1M in Revenue (+48% YoY) and a mind-blowing 37% GAAP Gross Margin.

For context... hardware companies usually fight for 15-20% margins. Rocket Lab is printing software-like margins on space hardware. That is the signal we look for.

(By the way, if you're new to my analysis process, I use a specific framework to filter noise like the Neutron delay from the real fundamental signal... check out my 10x Stock Checklist: My Exact 47-Point Analysis Framework.)

Why did Rocket Lab's Revenue Accelerate (+48%)?

The headline growth number was +48% Year-over-Year, accelerating from previous quarters. But where is it coming from?

It’s not just launching rockets. The revenue mix is the "hidden gem" here:

• Space Systems (Satellites/Components): $104M (67% of total revenue)
• Launch (Electron): $51M (33% of total revenue)

Everyone thinks RKLB is a "Launch" stock. It's not. It's a "Space Infrastructure" stock that happens to own its own shipping truck.

They signed 17 new Electron contracts in Q3 alone. That is a record pace. The backlog now sits at $1.1 Billion. That is nearly 2 years of revenue locked in, fully de-risking the growth story for 2026.

What are the Unit Economics Saying? (The "Golden" Signal)

This is the section that matters most. I nearly spit out my coffee when I saw the GAAP Gross Margin at 37%.

Wall Street was expecting ~33-35%. A 200-400 basis point beat on margins is massive for a manufacturing business.

Why is this happening? Volume. As they scale electron launches (on track for 20+ this year) and mass-produce components (solar panels, reaction wheels, radios), their fixed costs are spreading out.

• Operating Margin: Improved to (38%) from (45%).
• Net Loss: Narrowed to -$0.03 EPS (vs -$0.10 expected).

They are proving they can be profitable before Neutron even flies. That changes the entire risk profile of the trade.

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How to Find Setups Like This on TradingView

I don't just wait for earnings to pop up in my news feed. I scan for companies showing this exact "Margin Expansion + Revenue Acceleration" behavior.

I spot these setups using the screener on TradingView. Here is exactly how I found this:

1. Filter 1: Revenue Growth YoY > 30% (We want hyper-growth).
2. Filter 2: Gross Margin > 30% (Filters out low-quality hardware businesses).
3. Filter 3: Market Cap < $30B (We want room to 10x).

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If you want to run these screens yourself, grab a free trial here: TradingView Screener.

Does RKLB Still Have 10x Potential?

The thesis for a "10-bagger" requires a massive TAM (Total Addressable Market) and a Moat.

• The Moat: They are the only reliable small launch provider. SpaceX does big rideshare; Rocket Lab does dedicated precision. They have effectively monopolized the small launch market.
• The "Whale" Hunt: Management confirmed the "Confidential Commercial Constellation" customer is actively booking Neutron slots. Plus, the acquisition of Geost ($325M deal) means they now sell the "eyes" of the satellite (sensors) to the National Security sector.

They are guiding for $170M - $180M in Q4. That puts them on a ~$700M+ run rate entering 2026. If Neutron works, this is easily a multi-billion dollar revenue company by 2027/2028.

Risks & Bear Case (The "Neutron" Elephant)

Let's be honest about the risks.

• The Neutron Delay: Pushed to Mid-2026. The market hates delays. It pushes out the "big" revenue stream by 6 months.
• Cash Burn: Free Cash Flow was -$69.4M this quarter. They have $1.05B in cash, so they aren't going broke, but they are burning money to build the Neutron pad.
• Valuation: After the recent run-up, expectations are high. Any further slips in the Neutron timeline will be punished severely by the stock price.

The Verdict

Rocket Lab has graduated. It's no longer a speculative SPAC; it's a top-tier defense and aerospace contractor with software-like margins.

The Neutron delay is annoying, but the 37% Gross Margin proves the business model works. I am using any volatility caused by the delay news to accumulate. This is a "Buy the Dip" for a long-term hold.

Before you buy, make sure this passes the full sniff test. You can download my 10x Stock Checklist here to run the full audit yourself.