Rocket Lab is signaling to investors once again that it is more than just a rocket company. The company’s second-quarter results, released Thursday, revealed that its space systems business continues to drive revenue rather than its launch operations. The report also emphasized Rocket Lab’s acquisition strategy and how its recent purchase of an optical payloads company will strengthen its position for lucrative government contracts.
Space systems accounted for $97.9 million of Rocket Lab’s total second-quarter revenue of $144.5 million, marking the highest quarterly revenue in the company’s history—a 36% increase from the previous year. However, the net loss widened to $66.4 million.
Founder and CEO Peter Beck highlighted a busy quarter of mergers and acquisitions as the company nears the close of its $275 million deal to acquire Geost, a manufacturer of optical payloads. This acquisition will establish a new business unit called Optical Systems, focused on scaling production of electro-optical and infrared sensors. These sensors are critical for missile warning, tracking, and space domain awareness.
The move aligns with Rocket Lab’s broader strategy to compete for multibillion-dollar Department of Defense initiatives, such as Golden Dome. The company has already secured significant defense contracts, including a $515 million deal to build 18 satellites for the Space Development Agency’s missile-tracking constellation. Production is underway following confirmation that the satellites meet the DOD’s mission requirements.
On the launch front, Rocket Lab is making progress toward the first flight of its larger Neutron rocket. The launch complex in Virginia is expected to be completed in the third quarter of this year, with hardware in transit and the new Archimedes engine undergoing multiple daily tests. While the company has not specified an exact launch date, it has committed to an all-out effort to get Neutron to the pad before the end of 2025.
Rocket Lab ended the quarter with $564 million in cash and cash equivalents and projects third-quarter revenue between $145 million and $155 million.