Rocket Lab Corp

Previous wording

Electron is our orbital small launch vehicle that was designed from the ground up to accommodate a high launch rate business model to meet the growing and dynamic needs of our customers for small launch services. Since its maiden launch in 2017, Electron has become the leading small spacecraft launch vehicle delivering 197 spacecraft to orbit for government and commercial customers across 49 successful missions through September 30, 2024. In 2023, Electron was the second most frequently orbital launched rocket by companies operating in the United States and maintained Rocket Lab as the fourth most frequent orbital launcher globally. Our launch services program has seen us develop many industry-leading innovations, including 3D printed electric turbo-pump rocket engines, fully carbon composite first stage fuel tanks, a private orbital launch complex, a rocket stage that can be configured to convert into a highly capable spacecraft on orbit, and the potential ability to successfully recover a stage from space, providing a path to reusability.

Current wording

Electron is our orbital small launch vehicle that was designed from the ground up to accommodate a high launch rate business model to meet the growing and dynamic needs of our customers for small launch services. Since its maiden launch in 2017, Electron has become the leading small spacecraft launch vehicle delivering over 200 spacecraft to orbit for government and commercial customers across 59 successful missions through March 31, 2025. In 2024, Electron was the second most frequently orbital launched rocket by companies operating in the United States and the second most frequent orbital launcher globally. Our launch services program has seen us develop many industry-leading innovations, including 3D printed electric turbo-pump rocket engines, fully carbon composite first stage fuel tanks, a private orbital launch complex, a rocket stage that can be configured to convert into a highly capable spacecraft on orbit, and the potential ability to successfully recover a stage from space, providing a path to reusability.

Previous wording

In March 2021, we announced plans to develop our reusable-ready medium-capacity Neutron launch vehicle which will increase the payload capacity of our space launch vehicles to approximately 15,000 kg for expendable launches to low Earth orbit and lighter payloads for reusable configurations and into higher orbits. Neutron will be tailored for commercial and U.S. government constellation launches and ultimately configurable for and capable of human space flight, enabling us to provide crew and cargo resupply to the International Space Station. Neutron will also provide a dedicated service to orbit for larger civil, defense and commercial payloads that need a high level of schedule control and high-flight cadence. Neutron is expected to have the capability of launching nearly all of the spacecraft configurations that we expect to be launched through 2029 and we expect to be able to leverage Electron’s flight heritage across various vehicle subsystems designs, launch complexes and ground station infrastructure.

Current wording

In March 2021, we announced plans to develop our reusable-ready medium-capacity Neutron launch vehicle that will increase the payload capacity of our space launch vehicles to approximately 15,000 kg for expendable launches to low Earth orbit and lighter payloads for reusable configurations and into higher orbits. Neutron will be tailored for commercial and U.S. government constellation launches and ultimately configurable for and capable of human space flight, enabling us to provide crew and cargo resupply to space stations. Neutron will also provide a dedicated service to orbit for larger civil, defense and commercial payloads that need a high level of schedule control and high-flight cadence. We expect to be able to leverage Electron’s flight heritage across various vehicle subsystems designs, launch complexes and ground station infrastructure.

Previous wording

Our space systems initiatives are supported by the design and manufacture of our family of advanced configurable spacecraft along with a range of components, software and services for spacecraft, including reaction wheels, star trackers, radios, separation systems, solar solutions, command and control spacecraft software, high voltage space grade battery solutions, and additional products in development to serve a wide variety of sub-system functions. We entered this market with our acquisition of leading spacecraft components manufacturer Sinclair Interplanetary, and have since expanded our market participation with the acquisitions of Planetary Systems Corporation, SolAero Holdings, Inc. and aerospace software firm Advanced Solutions, Inc. Each of these strategic acquisitions brought incremental vertically-integrated capabilities for our own family of advanced configurable spacecraft and also enabled Rocket Lab to deliver high-volume manufacturing of critical spacecraft components and software solutions at scale prices to the broader spacecraft merchant market. The family of advanced configurable spacecraft, which are configurable for a range of low Earth orbit, medium Earth orbit, geosynchronous orbit and interplanetary missions enable us to offer an end-to-end mission solution encompassing launch, full spacecraft manufacturing, ground services and mission operations to provide customers with streamlined access to orbit with Rocket Lab as a single mission partner.

Current wording

Our space systems initiatives are supported by the design and manufacture of our spacecraft family along with a range of components, software and services for spacecraft, including reaction wheels, star trackers, radios, separation systems, solar solutions, command and control spacecraft software, high voltage space grade battery solutions, and additional products in development to serve a wide variety of sub-system functions. We entered this market with our acquisition of leading spacecraft components manufacturer Sinclair Interplanetary, and have since expanded our market participation with the acquisitions of Planetary Systems Corporation, SolAero Technologies Corp. and aerospace software firm Advanced Solutions, Incorporated. Each of these strategic acquisitions brought incremental vertically-integrated capabilities for our own spacecraft family and also enabled Rocket Lab to deliver high-volume manufacturing of critical spacecraft components and software solutions at scale prices to the broader spacecraft merchant market. Our spacecraft family, which are configurable for a range of low Earth orbit, medium Earth orbit, geosynchronous orbit and interplanetary missions enable us to offer an end-to-end mission solution encompassing launch, full spacecraft manufacturing, ground services and mission operations to provide customers with streamlined access to orbit with Rocket Lab as a single mission partner.

Previous wording

Our results will be impacted by our ability to sell our launch services, space systems services, and spacecraft components to new and existing customers. We have successfully launched Electron 49 times delivering 197 spacecraft to orbit, including one suborbital launch, through September 30, 2024. We have flight hardware and spacecraft that have flown on over 1,700 missions, including legacy missions enabled by Sinclair Interplanetary (acquired April 2020), Advanced Space Solutions, Inc (acquired October 2021), Planetary Space Corporation (acquired November 2021) and SolAero Technologies (acquired January 2022). Our growth opportunity is dependent on our ability to expand our addressable launch services market with larger volumetric and higher mass payload capabilities of our in-development medium-capacity Neutron launch vehicle, which will address large commercial and government constellation launch opportunities. Our growth opportunity is also dependent on our ability to win spacecraft constellation missions and expand our portfolio of strategic spacecraft components. Our ability to sell additional products to existing customers is a key part of our success, as follow-on purchases indicate customer satisfaction and decrease the likelihood of competitive substitution. To sell additional products and services to new and existing customers, we will need to continue to invest significant resources in our products and services.

Current wording

Our results will be impacted by our ability to sell our launch services, space systems services, and spacecraft components to new and existing customers. We have successfully launched Electron 59 times delivering over 200 spacecraft to orbit, including one suborbital launch, through March 31, 2025. We have flight hardware and spacecraft that have flown on over 1,800 missions, including legacy missions enabled by Sinclair Interplanetary (acquired April 2020), Advanced Solutions, Incorporated (acquired October 2021), Planetary Systems Corporation (acquired November 2021) and SolAero Technologies Corp. (acquired January 2022). Our growth opportunity is dependent on our ability to expand our addressable launch services market with larger volumetric and higher mass payload capabilities of our in-development medium-capacity Neutron launch vehicle, which will address large commercial and government constellation launch opportunities. Our growth opportunity is also dependent on our ability to win spacecraft constellation missions and expand our portfolio of strategic spacecraft components. Our ability to sell additional products to existing customers is a key part of our success, as follow-on purchases indicate customer satisfaction and decrease the likelihood of competitive substitution. To sell additional products and services to new and existing customers, we will need to continue to invest significant resources in our products and services.

Previous wording

We built approximately eight launch vehicles 2021, approximately 12 launch vehicles in 2022 and approximately 11 launch vehicles in 2023. We built approximately 10 launch vehicles through the nine months ended September 30, 2024. We launched six vehicles in 2021, nine vehicles in 2022 and ten vehicles in 2023. We have launched 11 vehicles through the nine months ended September 30, 2024 and launched 12 vehicles through November 12, 2024. Growth rates between launches and total launch service revenue are not perfectly correlated because our total revenue is affected by other variables, such as the revenue per launch, which can vary considerably based on factors such as unique orbit and insertion requirements, payload handling needs, launch location, time sensitivity of mission completion and other factors. We believe that the growth in our build rate and launch rate is a positive indicator of our ability to scale our launch operations.

Current wording

We built approximately 12 Electron launch vehicles in 2022, approximately 11 Electron launch vehicles in 2023 and approximately 14 Electron launch vehicles in 2024. We built approximately 6 Electron launch vehicles through the three months ended March 31, 2025. We launched nine Electron vehicles in 2022, ten Electron vehicles in 2023 and 16 Electron vehicles in 2024. We have launched five Electron vehicles through the three months ended March 31, 2025. Growth rates between launches and total launch service revenue are not perfectly correlated because our total revenue is affected by other variables, such as the revenue per launch, which can vary considerably based on factors such as unique orbit and insertion requirements, payload handling needs, launch location, time sensitivity of mission completion and other factors.

Previous wording

We generated $303.8 million and $184.6 million in revenue for the nine months ended September 30, 2024 and 2023, respectively, representing a year-on-year increase in revenue of approximately 65%. This year-on-year increase primarily resulted from space systems revenue growth of $99.6 million and launch revenue growth of $19.6 million due to a higher launch cadence with 11 launch missions completed in the nine months ended September 30, 2024, versus nine launch missions completed in the nine months ended September 30, 2023 and higher revenue value per launch.

Current wording

We generated $122.6 million and $92.8 million in revenue for the three months ended March 31, 2025 and 2024, respectively, representing a year-on-year increase in revenue of approximately 32%. This year-on-year increase resulted from space systems revenue growth of $26.9 million, primarily driven by satellite manufacturing, and an increase in launch revenue of $2.9 million. Launch revenue growth was due to a higher launch cadence with five Electron launch missions completed in the three months ended March 31, 2025, versus four launch missions completed in the three months ended March 31, 2024, partially offset by a lower revenue per launch.

Previous wording

Revenue and cost value per launch represents the average revenue and cost per launch contract attributable to launches that occurred during a period. Revenue and cost value per launch can be a useful metric to provide insight into general competitiveness and price sensitivity in the marketplace. Revenue and cost value per launch can vary considerably, based on factors such as unique orbit and insertion requirements, payload handling needs, launch location, time sensitivity of mission completion and other factors, and as such may not provide absolute clarity with regards to pricing and competitive dynamics in the marketplace.

Current wording

Revenue value per launch represents the average revenue per launch contract attributable to launches that occurred during a period, regardless of when the revenue was recognized. Revenue value per launch can be a useful metric to provide insight into general competitiveness and price sensitivity in the marketplace. Revenue value per launch can vary considerably, based on factors such as unique orbit and insertion requirements, payload handling needs, launch location, time sensitivity of mission completion and other factors, and as such may not provide absolute clarity with regards to pricing and competitive dynamics in the marketplace.

Previous wording

In the three months ended September 30, 2024 and 2023, our revenue value per launch was $7.0 million and $7.1 million, respectively. Meanwhile, cost per launch for the three months ended September 30, 2024 and 2023 was $5.0 million and $5.2 million, respectively.

Current wording

In the three months ended March 31, 2025 and 2024, our revenue value per launch was $7.1 million and $8.2 million, respectively. Meanwhile, cost per launch for the three months ended March 31, 2025 and 2024 was $5.7 million and $6.1 million, respectively. Revenue and cost per launch can fluctuate depending on customer mix and mission type.

Previous wording

Backlog represents future revenues that we would recognize in connection with the completion of all contracts and purchase orders that have been entered into by our customers but have not yet been fulfilled, excluding any customer options for future products or services that have not yet been exercised. Contracts for launch services and spacecraft builds typically include termination rights that may be exercised by customers upon advanced notice and payment of a specified termination fee. Our backlog increased from $1,046.1 million as of December 31, 2023 to $1,047.6 million as of September 30, 2024, of which $326.4 million is related to Launch Services and $721.2 million is related to Space Systems. The increase was primarily a result of bookings during the period, partially offset by recognizing revenue on contracts during the period.

Current wording

Backlog represents future revenues that we would recognize in connection with the completion of all contracts and purchase orders that have been entered into by our customers but have not yet been fulfilled, excluding any customer options for future products or services that have not yet been exercised. Contracts for launch services and spacecraft builds typically include termination rights that may be exercised by customers upon advanced notice and payment of a specified termination fee. Our backlog remained virtually unchanged from $1,067.0 million as of December 31, 2024 to $1,066.9 million as of March 31, 2025, of which $644.8 million is related to space systems and $422.1 million is related to launch services. The slight change was a result of recognizing revenue on contracts during the period, offset by continued bookings during the period.

Previous wording

Our revenues are derived from a combination of long-term fixed price contracts for launch services and spacecraft builds, and purchase order based spacecraft components sales. Revenues from long-term contracts are recognized using either the “point-in-time” or “over-time” method of revenue recognition. Point-in-time revenue recognition results in cash payments being initially accrued to the balance sheet as deferred revenue as contractual milestones are accomplished and then recognized as revenue once the final contractual obligation is completed. Over-time revenue recognition is based on an input measure of progress based on costs incurred compared to estimated total costs at completion. Each project has a contractual revenue value and an estimated cost. The over-time revenue is recognized based on the percentage of the total project cost that has been realized.

Current wording

Our revenues are derived from a combination of long-term fixed price contracts for launch services and spacecraft builds, and purchase order based spacecraft components sales. Revenues from long-term contracts are recognized using either the “point-in-time” or “over-time” method of revenue recognition. Point-in-time revenue recognition results in cash payments being initially accrued to the balance sheet as deferred revenue as contractual milestones are accomplished and then recognized as revenue once the final contractual obligation is completed. Over-time revenue recognition is generally based on an input measure of progress based on costs incurred compared to estimated total costs at completion. Each project has a contractual revenue value and an estimated cost. The over-time revenue is recognized based on the percentage of the total project cost that has been realized.

Previous wording

Cost of revenues consists primarily of direct material and labor costs, manufacturing overhead, other personnel-related expenses, which include salaries, bonuses, benefits and stock-based compensation expense, reserves for estimated warranty costs, freight expense and depreciation expense. Cost of revenues also includes charges to write-down the carrying value of inventory when it exceeds its estimated net realizable value, including on-hand inventory that is either obsolete or in excess of forecasted demand. We expect our cost of revenues to increase in absolute dollars in future periods as we sell more launch services and space systems solutions. As we grow into our current capacity and execute on cost-reduction initiatives, we expect our cost of revenues as a percentage of revenue to decrease over time.

Current wording

Cost of revenues consists primarily of direct material and labor costs, manufacturing overhead, freight expense, depreciation and amortization and other personnel-related expenses, which include salaries, bonuses, benefits and stock-based compensation expense, directly associated with generating revenues. We expect our cost of revenues to increase in absolute dollars in future periods as we sell more launch services and space systems. As we grow into our current capacity and execute on cost-reduction initiatives, we expect our cost of revenues as a percentage of revenue to decrease over time.

Previous wording

Research and development expense consists primarily of personnel-related expenses, consulting and contractor expenses, design software licenses, validation and testing expense, prototype parts and materials, facilities and depreciation expense. We intend to continue to make significant investments in developing new products and enhancing existing products, including but not limited to our medium capacity Neutron launch vehicle, Electron’s first stage recovery, and family of advanced configurable spacecraft features and capabilities, as well as expanding our portfolio of spacecraft components and subsystems. Research and development expense will be variable relative to the number of products that are in development, validation or testing. However, we expect it to decline as a percentage of total revenue over time.

Current wording

Research and development, net expense consists primarily include labor, prototype, professional services, materials, facilities and depreciation expense. We intend to continue to make significant investments in developing new products and enhancing existing products, including but not limited to our medium capacity Neutron launch vehicle, Electron’s first stage recovery, and spacecraft features and capabilities, as well as expanding our portfolio of spacecraft components and subsystems. Research and development expense will be variable relative to the number of products that are in development, validation or testing. However, we expect it to decline as a percentage of total revenue over time.

Previous wording

Selling, general and administrative expenses consist primarily of personnel-related expenses for our sales, marketing, supply chain, finance, legal, human resources and administrative personnel, as well as the costs of customer service, information technology, risk management and related insurance, travel, allocated overhead and other marketing, communications and administrative expenses. We also expect to further invest in our corporate infrastructure and incur additional expenses associated with operating as a public company, including increased legal and accounting costs and compliance costs. As a result, we expect that selling, general and administrative expenses will increase in absolute dollars in future periods but decline as a percentage of total revenue over time.

Current wording

Selling, general and administrative expenses consist primarily of personnel-related expenses for our sales, marketing, supply chain, finance, legal, human resources and administrative personnel, as well as the costs of customer service, information technology, risk management and related insurance, travel, allocated overhead and other marketing, communications and administrative expenses. We also expect to further invest in our corporate infrastructure and incur additional expenses associated with operating as a public company, including increased legal and accounting costs, investor relations and compliance costs. As a result, we expect that selling, general and administrative expenses will increase in absolute dollars in future periods but decline as a percentage of total revenue over time.

Previous wording

Revenue increased by $37.1 million, or 55%, for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. Space systems revenue was $83.9 million for the three months ended September 30, 2024, an increase of $37.5 million, or 81%, primarily due to spacecraft manufacturing growth. Launch Services revenue was $21.0 million for the three months ended September 30, 2024, a decrease of $0.4 million, or 2%, primarily due to a lower revenue per launch in the three months ended September 30, 2024 versus the three months ended September 30, 2023.

Current wording

Revenue increased by $29.8 million, or 32%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. Space systems revenue was $87.0 million for the three months ended March 31, 2025, an increase of $26.9 million, or 45%, primarily due to spacecraft manufacturing growth. Launch Services revenue was $35.6 million for the three months ended March 31, 2025, an increase of $2.9 million, or 9%, primarily due to a higher launch cadence with five Electron launch missions completed in the three months ended March 31, 2025, versus four launch missions completed in the three months ended March 31, 2024, partially offset by a lower revenue per launch in the three months ended March 31, 2025.

Previous wording

Cost of revenues increased by $24.1 million, or 46%, for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. Space systems cost of revenue was $61.8 million in the three months ended September 30, 2024, an increase of $24.7 million, or 66%, primarily due to spacecraft manufacturing growth. Launch Services cost of revenues was $15.0 million in the three months ended September 30, 2024, a decrease of $0.5 million, or 3%, primarily due to a lower cost per launch.

Current wording

Cost of revenues increased by $18.7 million, or 27%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. Space systems cost of revenue was $58.9 million for the three months ended March 31, 2025, an increase of $14.7 million, or 33%, primarily due to spacecraft manufacturing growth. Launch Services cost of revenues was $28.4 million in the three months ended March 31, 2025, an increase of $4.1 million, or 17%, primarily due to a higher cadence.

Previous wording

Research and development expense increased by $21.1 million, or 79%, for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023, primarily due to Neutron development progress, increased staff cost as a result of hiring and prototype spend focused on expanding our spacecraft and spacecraft components product portfolio.

Current wording

Research and development expense increased by $16.6 million, or 43%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to Neutron development progress, increased staff and staff related expenses as a result of hiring and prototype spend focused on expanding our spacecraft and spacecraft components product portfolio.

Previous wording

Selling, general and administrative expense increased by $5.0 million, or 18%, for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023, primarily due to increased staff and staff related expenses to support revenue growth.

Current wording

Selling, general and administrative expense increased by $10.6 million, or 37%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to increased staff and staff related expenses to support revenue growth.

Previous wording

Interest expense, net of interest income decreased by $1.0 million, or 68%, for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023, primarily due to an increase of interest income from increased money market account balances and decreased interest expense on secured borrowings, partially offset by interest expense incurred on senior convertible notes.

Current wording

Interest expense, net of interest income increased by $1.7 million, or 188%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to an increase of interest expense from our convertible senior notes and a reduced balance in interest-bearing accounts.

Previous wording

Loss on foreign exchange increased by $0.4 million, or 308%, for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023, primarily due to fluctuations on the foreign exchange rates of the New Zealand Dollar and Canadian Dollar as compared to the U.S. Dollar.

Current wording

Loss on foreign exchange increased by $0.4 million, or 143%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to fluctuations on the foreign exchange rates of the New Zealand Dollar and Canadian Dollar as compared to the U.S. Dollar.

Previous wording

Other income increased by $0.7 million, or 57%, for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023, primarily due to a $1.2 million gain on disposal of assets.

Current wording

Other income increased by $1.1 million, or 181%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to a loss on extinguishment of debt for the three months ended March 31, 2024.

Previous wording

We recorded income tax expense of $0.9 million for the three months ended September 30, 2024 and income tax expense of $1.4 million for the three months ended September 30, 2023. The effective tax rate was (1.9)% for the three months ended September 30, 2024, compared to (3.4)% for the three months ended September 30, 2023. The effective tax rate differs from the federal statutory rate due primarily to a full valuation allowance against our U.S. deferred tax assets, as well as the impact of discrete items that may occur in any given year but which are not consistent from year-to-year.

Current wording

We recorded income tax benefit of $0.8 million for the three months ended March 31, 2025 and income tax expense of $0.0 million for the three months ended March 31, 2024. The effective tax rate was 1.3% for the three months ended March 31, 2025, compared to (0.0)% for the three months ended March 31, 2024. The effective tax rate differs from the federal statutory rate due primarily to a full valuation allowance against our U.S. deferred tax assets.

Previous wording

Since inception, we have funded our operations with proceeds from sales of our capital stock, convertible senior notes, term note debt, research and development grant proceeds, and cash flows from the sale of our products and services. As of September 30, 2024, we had $292.5 million of cash and cash equivalents and $211.2 million of marketable securities. Our primary requirements for liquidity and capital are for investment in new products and technologies, the expansion of existing manufacturing facilities, working capital, debt service, acquisitions of complementary businesses, products or technologies and general corporate needs.

Current wording

Since inception, we have funded our operations with proceeds from sales of our capital stock, convertible senior notes, term note debt, equipment financing, research and development grant proceeds, and cash flows from the sale of our products and services. As of March 31, 2025, we had $303.1 million of cash and cash equivalents and $209.2 million of marketable securities. Our primary requirements for liquidity and capital are for investment in new products and technologies, the expansion of existing manufacturing facilities, working capital, debt service, acquisitions of complementary businesses, products or technologies and general corporate needs. Historically, these cash requirements have been met through the net proceeds we received through private sales of equity securities and convertible senior notes, borrowings under our credit and equipment financing facilities, net proceeds received in our business combination, net proceeds received from our ATM Equity Offering and payments received from customers.

Previous wording

We believe that our existing cash and cash equivalents and payments from customers will be sufficient to meet our working capital and capital expenditure needs for at least the next twelve months, although we may choose to take advantage of opportunistic capital raising or refinancing transactions at any time. We will continue to invest in increasing production and expanding our product offerings through acquisitions.

Current wording

We believe that our existing cash and cash equivalents and payments from customers will be sufficient to meet our working capital and capital expenditure needs for at least the next twelve months, although we may choose to take advantage of opportunistic capital raising or refinancing transactions at any time primarily for the purposes noted above. We will continue to invest in increasing production and expanding our product offerings through acquisitions.

Previous wording

As of September 30, 2024, we had outstanding $416.2 million in aggregate principal amount of indebtedness under our convertible senior notes and equipment financing agreement, of which $11.8 million was scheduled to become due in the following twelve months. As of September 30, 2024, our total minimum lease payments was $103.0 million, of which $10.6 million is due in the following twelve months. For details regarding our indebtedness and lease obligations at September 30, 2024, refer to Note 11, Loan Agreements, and Note 14, Leases, to our consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Current wording

As of March 31, 2025, we had outstanding $435.4 million in aggregate principal amount of indebtedness under our convertible senior notes and equipment financing agreement, of which $20.5 million was scheduled to become due in the following twelve months. As of March 31, 2025, our total minimum lease payments was $100.1 million, of which $11.0 million is due in the following twelve months. For details regarding our indebtedness and lease obligations at March 31, 2025, refer to Note 10, Loan Agreements, and Note 13, Leases, to our consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

Our capital expenditures for the nine months ended September 30, 2024 were $45.5 million. Our future capital requirements will depend on many factors, including our launch cadence, traction in the market with our space systems offerings, the expansion of sales and marketing activities, the timing and extent of spending to support product development efforts, the introduction of new and enhanced products, the continuing market adoption of our products, the timing and extent of additional capital expenditures to invest in existing and new office spaces and the number of acquisitions of complementary businesses, products or technologies we pursue, if any. We may be required to seek additional equity or debt financing. In the event that we require additional financing, we may not be able to raise such financing on terms acceptable to us or at all. If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in continued product innovation, we may not be able to compete successfully, which would harm our business, operations and financial condition.

Current wording

Our capital expenditures for the three months ended March 31, 2025 were $28.7 million. Our future capital requirements will depend on many factors, including our launch cadence, traction in the market with our space systems offerings, the expansion of sales and marketing activities, the timing and extent of spending to support product development efforts, the introduction of new and enhanced products, the continuing market adoption of our products, the timing and extent of additional capital expenditures to invest in existing and new office spaces and the number of acquisitions of complementary businesses, products or technologies we pursue, if any. We may be required to seek additional equity or debt financing or we may choose to take advantage of opportunistic capital raising or financing transactions primarily for the purposes noted above. In the event that we require additional financing, we may not be able to raise such financing on terms acceptable to us or at all. If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in continued product innovation, we may not be able to compete successfully, which would harm our business, operations and financial condition.

Previous wording

increase our investment in marketing, sales and distribution infrastructure for our existing and future products and services;

Current wording

•increase our investment in marketing, advertising, sales and distribution infrastructure for our existing and future products and services;

Previous wording

As of September 30, 2024, there was $355.0 million outstanding under our 4.250% Convertible Senior Notes due 2029, before unamortized discount and debt issuance costs of $10.1 million. In addition, as of September 30, 2024, there was $61.2 million outstanding under the Trinity Loan Agreement, before unamortized discount and debt issuance costs of $2.5 million.

Current wording

As of March 31, 2025, there was $355.0 million outstanding under our 4.250% Convertible Senior Notes due 2029, before unamortized discount and debt issuance costs of $9.1 million. In addition, as of March 31, 2025, there was $80.4 million outstanding under the Trinity Loan Agreement, before unamortized discount and debt issuance and end of term costs of $2.2 million.

Previous wording

Net cash used in operating activities was $46.5 million for the nine months ended September 30, 2024 and consisted of $137.8 million in net loss, $70.0 million in non-cash activities and $21.4 million in cash provided by operating assets and liabilities. Included in the non-cash activities are $39.9 million in stock-based compensation expense and $24.5 million in depreciation and amortization. Included in the cash provided by operating assets and liabilities are $27.8 million in contract liabilities, $13.9 million in trade payables, $12.9 million in accounts receivable, net, offset by cash used in operating assets and liabilities including $36.5 million in contract assets and $7.1 million in inventories.

Current wording

Net cash used in operating activities was $54.2 million for the three months ended March 31, 2025 and consisted of $60.6 million in net loss, $29.2 million in non-cash activities and $22.8 million in cash used by operating assets and liabilities. Included in the non-cash activities are $19.2 million in stock-based compensation expense and $8.7 million in depreciation and amortization. Included in the cash used by operating assets and liabilities are $9.6 million in prepaids and other current assets, $9.3 million in contract liabilities, $6.3 million in inventories, offset by cash provided in operating assets and liabilities including $9.8 million in trade payables.

Previous wording

Cash used in investing activities for the nine months ended September 30, 2024 of $80.4 million was primarily driven by $46.6 million of net cash used in investing activities related to purchases and maturities of marketable securities and $45.5 million of capital equipment and infrastructure investments, partially offset by $11.8 million of proceeds on disposal of assets, net primarily related to the sale of a helicopter.

Current wording

Cash used in investing activities for the three months ended March 31, 2025 of $28.6 million was primarily driven by $28.7 million of capital equipment and infrastructure investments.