Rocket Lab Corp

Previous wording

The following discussion and analysis provides information that management believes is relevant to an assessment and understanding of our condensed consolidated results of operations and financial condition. You should read this discussion and analysis in conjunction with the unaudited condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q. For additional context with which to understand our financial condition and results of operations, see the audited consolidated financial statements and accompanying notes contained therein as of December 31, 2025 and 2024 and related notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC on February 26, 2026 (our “Form 10-K”). Certain amounts may not foot due to rounding. Certain information in this discussion and analysis or set forth elsewhere in this Quarterly Report on Form 10-Q contains forward-looking statements that involve numerous risks and uncertainties, including, but not limited to, those described under the sections entitled “Cautionary Note Regarding Forward-Looking Statements” and Part II, Item 1A. “Risk Factors” included in this Quarterly Report on Form 10-Q and under the heading “Risk Factors” in our Form 10-K. We assume no obligation to update any of these forward-looking statements. Actual results may differ materially from those contained in any forward-looking statements.

Current wording

The following discussion and analysis provides information that management believes is relevant to an assessment and understanding of our condensed consolidated results of operations and financial condition. You should read this discussion and analysis in conjunction with the unaudited condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q. For additional context with which to understand our financial condition and results of operations, see the audited consolidated financial statements and accompanying notes contained therein as of December 31, 2025 and 2024 and related notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC on February 26, 2026 (our “Form 10-K”). Certain amounts may not foot due to rounding. Certain information in this discussion and analysis or set forth elsewhere in this Quarterly Report on Form 10-Q contains forward-looking statements that involve numerous risks and uncertainties, including, but not limited to, those described under the sections entitled “Cautionary Note Regarding Forward-Looking Statements” and Part II, Item 1A. “Risk Factors” included in this Quarterly Report on Form 10-Q and under the heading “Risk Factors” in our Form 10-K and Quarterly Report on Form 10-Q for the period ended June 30, 2026 as filed with the SEC on August 10, 2026. We assume no obligation to update any of these forward-looking statements. Actual results may differ materially from those contained in any forward-looking statements.

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 over 250 spacecraft to orbit for government and commercial customers across 87 successful missions through June 30, 2026. In 2025, Electron was the second most frequently launched orbital rocket. 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 250 spacecraft to orbit for government and commercial customers across 93 successful missions through September 30, 2026. In 2025, Electron was the second most frequently launched orbital rocket. 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

We continue to make significant progress in the development of the Neutron launch vehicle. Neutron qualification testing from large structures through to component level systems is ongoing. During Q2, we achieved significant milestones across the Neutron program with ongoing integration and readiness of first-flight hardware, continued progress on Archimedes engine testing, and advancement of the second stage and reusable fairing systems.

Current wording

We continue to make significant progress in the development of the Neutron launch vehicle. During the third quarter, we continued advancement of first-flight hardware, Archimedes engine testing, and development of key vehicle systems and production infrastructure.

Previous wording

Risk and uncertainty remains in the complex development cycle of a new launch vehicle which could impact our current best estimate of a targeted timeline for first launch.

Current wording

Risk and uncertainty remain inherent in the complex development cycle of a new launch vehicle, including qualification, manufacturing, integration, and testing activities, which could further impact our estimates regarding the timing of first launch.

Previous wording

On June 28, 2026, we entered into a definitive agreement to acquire Iridium Communications Inc. The transaction is subject to customary closing conditions, including regulatory approval, and, if approved, is expected to close in 2027. Additional information regarding the transaction is included in Note 1 –Description of the Business to the condensed consolidated financial statements.

Current wording

On June 28, 2026, we entered into a definitive agreement to acquire Iridium Communications Inc. The transaction is subject to customary closing conditions, including regulatory approval, and, if approved, is currently expected to close in 2027. Additional information regarding the transaction is included in Note 1 –Description of the Business to the condensed consolidated financial statements.

Previous wording

Our future results will depend on the success of the development and commercial acceptance of our Neutron medium-capacity launch vehicle. While we have made significant progress across Neutron’s structures and infrastructure to date, including engine testing and initial production execution, the commercial development of a new launch vehicle is inherently time consuming and involves numerous risks throughout the engineering and manufacturing development cycle, hardware and systems testing, and infrastructure readiness, any of which could create further delays in reaching the initial launch and future launches of the completed vehicle. In addition, even if we succeed in developing Neutron to a successful initial launch, we could be unsuccessful in developing the ability to produce these launch vehicles in quantities and with the necessary quality manufacturing system that ensures each vehicle and engines perform as required or meet our expectations for future launch cadence. Any delay in the production of the Neutron launch vehicle or in our ability to produce these launch vehicles at our expected rate of production and with a reliable quality management system could have a material impact on customer acceptance as well as our future revenue, financial condition and results of operations. Additional delays or setbacks in Neutron development may require more research, development and capital expenditures than we currently anticipate, which could adversely affect our liquidity and capital resources in future periods.

Current wording

Our future results will depend on the success of the development and commercial acceptance of our Neutron medium-capacity launch vehicle. While we have made significant progress across Neutron’s structures and infrastructure to date, including engine testing and initial production execution, Neutron’s development has experienced manufacturing and testing challenges, including a recently identified manufacturing process issue affecting the first-stage composite structures that resulted in a revision to our expected inaugural launch timeline. The commercial development of a new launch vehicle is inherently time consuming and involves numerous risks throughout the engineering and manufacturing development cycle, hardware and systems testing, and infrastructure readiness, any of which could create further delays in reaching the initial launch and future launches of the completed vehicle. In addition, even if we succeed in developing Neutron to a successful initial launch, we could be unsuccessful in developing the ability to produce these launch vehicles in quantities and with the necessary quality manufacturing system that ensures each vehicle and its engines perform as required or meet our expectations for future launch cadence. Any delay in the production of the Neutron launch vehicle or in our ability to produce these launch vehicles at our expected rate of production and with a reliable quality management system could have a material impact on customer acceptance as well as our future revenue, financial condition and results of operations. Additional delays or setbacks in Neutron development may require more research, development and capital expenditures than we currently anticipate, which could adversely affect our liquidity and capital resources in future periods.

Previous wording

Ability to sell additional launch services, space systems service and spacecraft components to new and existing customers

Current wording

Ability to sell additional launch services, space systems services and spacecraft components to new and existing customers

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 87 times delivering over 250 spacecraft to orbit, including suborbital launches, through June 30, 2026. We have flight hardware and spacecraft with an extensive flight heritage, including legacy missions enabled by Sinclair Interplanetary (acquired April 2020), Advanced Solutions, Incorporated (acquired October 2021), Planetary Systems Corporation (acquired November 2021), SolAero Technologies Corp. (acquired January 2022), GEOST (acquired August 2025), Mynaric (acquired April 2026) and Motiv (acquired May 2026). 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 93 times delivering over 250 spacecraft to orbit, including suborbital launches, through September 30, 2026. We have flight hardware and spacecraft with an extensive flight heritage, including legacy missions enabled by Sinclair Interplanetary (acquired April 2020), Advanced Solutions, Incorporated (acquired October 2021), Planetary Systems Corporation (acquired November 2021), SolAero Technologies Corp. (acquired January 2022), GEOST (acquired August 2025), Mynaric (acquired April 2026) and Motiv (acquired May 2026). 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

Government expenditures and private enterprise investment has fueled the growth in our target markets. We expect the continued availability of government expenditures and private investment for our customers to help fund purchases of our products and services will remain. This is an important factor in our company’s growth prospects.

Current wording

Government expenditures and private enterprise investment have fueled the growth in our target markets. We expect the continued availability of government expenditures and private investment for our customers to help fund purchases of our products and services will remain. This is an important factor in our company’s growth prospects.

Previous wording

We built approximately 14 Electron launch vehicles in 2024 and approximately 24 Electron launch vehicles in 2025. We built approximately 11 Electron launch vehicles during the six months ended June 30, 2026. We launched 16 Electron vehicles in 2024 and 21 Electron vehicles in 2025. We launched 12 Electron vehicles during the six months ended June 30, 2026. 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, method of revenue recognition and other factors.

Current wording

We built approximately 14 Electron launch vehicles in 2024 and approximately 24 Electron launch vehicles in 2025. We built approximately 17 Electron launch vehicles during the nine months ended September 30, 2026. We launched 16 Electron vehicles in 2024 and 21 Electron vehicles in 2025. We launched 18 Electron vehicles during the nine months ended September 30, 2026. 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, method of revenue recognition and other factors.

Previous wording

We generated $234.1 million and $144.5 million in revenue for the three months ended June 30, 2026 and 2025, respectively, representing a year-on-year increase in revenue of approximately 62%. This year-on-year increase resulted from space systems revenue growth of $91.6 million, primarily driven by satellite manufacturing and acquisitions, partially offset by a decrease in launch revenue of $2.1 million. Launch revenue declined despite six Electron launch missions completed for the three months ended June 30, 2026 versus five Electron launch missions completed for the three months ended June 30, 2025, primarily due to revenue recognition timing. Two of the six Electron launch missions completed for the three months ended June 30, 2026 were Hypersonic Accelerator Suborbital Test Electron (“HASTE”) launch missions, for which revenue was recognized over time and was partially recognized in prior quarters. All five Electron launch missions completed for the three months ended June 30, 2025 were point-in-time launches. The decrease was partially offset by increased other launch revenue of $5.7 million, which includes contract termination and study revenue.

Current wording

We generated $267.8 million and $155.1 million in revenue for the three months ended September 30, 2026 and 2025, respectively, representing a year-on-year increase in revenue of approximately 73%. This year-on-year increase resulted from space systems revenue growth of $100.6 million, primarily driven by satellite manufacturing and acquisitions, and an increase in launch revenue of $12.2 million. Launch revenue growth was due to a higher launch cadence with six point-in-time Electron launch missions completed for the three months ended September 30, 2026 versus four Electron launch missions completed for the three months ended September 30, 2025. Two of the four Electron launch missions completed for the three months ended September 30, 2025 were Hypersonic Accelerator Suborbital Test Electron (“HASTE”) launch missions, for which revenue was recognized over time, including a cumulative catch-up adjustment of $13.3 million recognized in that quarter. The 2026 increase was partially offset by decreased revenue recognized on over-time HASTE launch missions and other launch revenue of $5.5 million, which includes contract termination and study revenue.

Previous wording

We generated $434.4 million and $267.1 million in revenue for the six months ended June 30, 2026 and 2025, respectively, representing a year-on-year increase in revenue of approximately 63%. This year-on-year increase resulted from space systems revenue growth of $141.3 million, primarily driven by satellite manufacturing and acquisitions, and an increase in launch revenue of $26.0 million. Launch revenue growth was due to a higher revenue per launch on point-in-time Electron launch missions, an increase in other launch revenue of $7.3 million, which includes contract termination and study revenue and revenue recognized on over-time HASTE launch missions.

Current wording

We generated $702.2 million and $422.1 million in revenue for the nine months ended September 30, 2026 and 2025, respectively, representing a year-on-year increase in revenue of approximately 66%. This year-on-year increase resulted from space systems revenue growth of $241.9 million, primarily driven by satellite manufacturing and acquisitions, and an increase in launch revenue of $38.2 million. Launch revenue growth was primarily due to a higher launch cadence with 18 Electron launch missions completed for the nine months ended September 30, 2026 versus 14 Electron launch missions completed for the nine months ended September 30, 2025 and a higher revenue per launch on point-in-time Electron launch missions, partially offset by revenue recognized on over-time HASTE launch missions.

Previous wording

For the three months ended June 30, 2026 and 2025, revenue per launch was $9.1 million and $7.9 million, respectively. Meanwhile, cost per launch for the three months ended June 30, 2026 and 2025 was $4.4 million and $5.0 million, respectively. The increase in revenue per launch reflects changes in customer mix and mission complexity during the period in which the launches occurred.

Current wording

For the three months ended September 30, 2026 and 2025, revenue per launch was $7.8 million and $10.1 million, respectively. Meanwhile, cost per launch for the three months ended September 30, 2026 and 2025 was $5.0 million and $5.9 million, respectively. The decrease in revenue per launch reflects changes in customer mix and mission complexity during the period in which the launches occurred. The decrease in cost per launch was primarily driven by efficiencies of scale.

Previous wording

For the six months ended June 30, 2026 and 2025, revenue per launch was $9.2 million and $7.5 million, respectively. Meanwhile, cost per launch for the six months ended June 30, 2026 and 2025 was $4.9 million and $5.3 million, respectively. The increase in revenue per launch reflects changes in customer mix and mission complexity during the period in which the launches occurred.

Current wording

For the nine months ended September 30, 2026 and 2025, revenue per launch was $8.7 million and $8.2 million, respectively. Meanwhile, cost per launch for the nine months ended September 30, 2026 and 2025 was $4.9 million and $5.5 million, respectively. The increase in revenue per launch reflects changes in customer mix and mission complexity during the period in which the launches occurred. The decrease in cost per launch was primarily driven by efficiencies of scale.

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. Backlog increased from $1,847.3 million as of December 31, 2025 to $2,355.9 million as of June 30, 2026, of which $1,415.8 million is related to space systems and $940.2 million is related to launch services. The increase was primarily a result of continued bookings and backlog added through acquisitions, partially offset by revenue recognized 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 advance notice and payment of a specified termination fee. Backlog increased from $1,847.3 million as of December 31, 2025 to $3,573.0 million as of September 30, 2026, of which $1,724.7 million is related to space systems and $1,848.3 million is related to launch services. The increase was primarily a result of continued bookings and backlog added through acquisitions, partially offset by revenue recognized on contracts during the period.

Previous wording

Revenue increased by $89.6 million, or 62%, for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Space systems revenue was $189.5 million for the three months ended June 30, 2026, an increase of $91.6 million, or 94%, primarily due to spacecraft manufacturing growth and acquisitions. Launch services revenue was $44.6 million for the three months ended June 30, 2026, a decrease of $2.1 million, or 4%, primarily due to revenue recognition timing. Two of the six Electron launch missions completed for the three months ended June 30, 2026 were HASTE launch missions, for which revenue was recognized over time and was partially recognized in prior quarters. All five Electron launch missions completed for the three months ended June 30, 2025 were point-in-time launches. The decrease was partially offset by increased other launch revenue of $5.7 million, which includes contract termination and study revenue.

Current wording

Revenue increased by $112.8 million, or 73%, for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025. Space systems revenue was $214.8 million for the three months ended September 30, 2026, an increase of $100.6 million, or 88%, primarily due to spacecraft manufacturing growth and acquisitions. Launch services revenue was $53.1 million for the three months ended September 30, 2026, an increase of $12.2 million, or 30%, primarily due to a higher launch cadence with six Electron launch missions completed in the three months ended September 30, 2026, versus four launch missions completed in the three months ended September 30, 2025. The increase was partially offset by decreased other launch revenue of $5.5 million, which includes contract termination and study revenue.

Previous wording

Cost of revenues increased by $51.4 million, or 52%, for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Space systems cost of revenue was $124.0 million for the three months ended June 30, 2026, an increase of $58.3 million, or 89%, primarily due to acquisitions and spacecraft manufacturing growth. Launch services cost of revenues was $25.5 million for the three months ended June 30, 2026, a decrease of $7.0 million, or 21%, primarily due to a decrease in point-in-time launches and timing of over time costs on HASTE launch missions.

Current wording

Cost of revenues increased by $80.0 million, or 82%, for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025. Space systems cost of revenue was $143.4 million for the three months ended September 30, 2026, an increase of $62.8 million, or 78%, primarily due to acquisitions and spacecraft manufacturing growth. Launch services cost of revenues was $34.3 million for the three months ended September 30, 2026, an increase of $17.2 million, or 100%, primarily due to an increase in point-in-time launches.

Previous wording

Research and development expenses increased by $16.3 million, or 25%, for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to Neutron development progress, incremental research and development spend at recently acquired businesses, increased staff and staff-related expenses as a result of hiring and prototype spend focused on expanding our spacecraft and spacecraft components product portfolio.

Current wording

Research and development expenses increased by $27.7 million, or 39%, for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025, primarily due to Neutron development progress, incremental research and development spend at recently acquired businesses, 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 expenses increased by $19.8 million, or 50%, for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to incremental selling, general and administrative spend at recently acquired businesses, increased staff and staff-related expenses to support revenue growth and increased transaction expenses related to managing an active acquisition pipeline.

Current wording

Selling, general and administrative expenses increased by $25.3 million, or 55%, for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025, primarily due to incremental selling, general and administrative spend at recently acquired businesses, increased staff and staff-related expenses to support revenue growth and increased transaction expenses related to managing an active acquisition pipeline.

Previous wording

Interest expense decreased by $6.8 million, or 92%, for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to conversions of the Convertible Senior Notes and the extinguishment of the Trinity Loan Agreement.

Current wording

Interest expense decreased by $7.0 million, or 96%, for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025, primarily due to conversions of the Convertible Senior Notes and the extinguishment of the Trinity Loan Agreement.

Previous wording

Interest income increased by $11.5 million, or 228%, for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to higher cash and cash equivalents balances held in interest bearing accounts.

Current wording

Interest income increased by $21.9 million, or 328%, for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025, primarily due to higher cash and cash equivalents balances held in interest bearing accounts.

Previous wording

Loss on foreign exchange increased by $1.5 million, or 300%, for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to fluctuations on the foreign exchange rates of the New Zealand Dollar, Euro and Canadian Dollar as compared to the U.S. Dollar.

Current wording

Gain on foreign exchange increased by $0.1 million, or 22%, for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025, primarily due to fluctuations in the foreign exchange rates of the New Zealand Dollar, Euro and Canadian Dollar as compared to the U.S. Dollar.

Previous wording

Provision for income taxes increased by $2.4 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. The effective tax rate was (12.1)% for the three months ended June 30, 2026, compared to (4.6)% for the three months ended June 30, 2025. 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

Provision for income taxes increased by $44.6 million for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025. The effective tax rate was (4.6)% for the three months ended September 30, 2026, compared to 69.2% for the three months ended September 30, 2025. The change was primarily driven by the release of the valuation allowance related to the deferred tax liability from the GEOST acquisition in the three months ended September 30, 2025. 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.

Previous wording

The following table sets forth our consolidated statements of operations and comprehensive loss information and data as a percentage of revenue for the six months ended June 30, 2026 and 2025 (in thousands, except percentages):

Current wording

The following table sets forth our consolidated statements of operations and comprehensive loss information and data as a percentage of revenue for the nine months ended September 30, 2026 and 2025 (in thousands, except percentages):

Previous wording

Revenue increased by $167.3 million, or 63%, for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Space systems revenue was $326.2 million for the six months ended June 30, 2026, an increase of $141.3 million, or 76%, primarily due to spacecraft manufacturing growth and acquisitions. Launch services revenue was $108.2 million for the six months ended June 30, 2026, an increase of $26.0 million, or 32%, primarily due to a higher launch cadence with 12 Electron launch missions completed for the six months ended June 30, 2026, versus 10 launch missions completed in the six months ended June 30, 2025, higher revenue per launch, an increase in other launch revenue of $7.3 million, which includes contract termination and study revenue and revenue recognized on over-time HASTE launch missions.

Current wording

Revenue increased by $280.1 million, or 66%, for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025. Space systems revenue was $540.9 million for the nine months ended September 30, 2026, an increase of $241.9 million, or 81%, primarily due to spacecraft manufacturing growth and acquisitions. Launch services revenue was $161.3 million for the nine months ended September 30, 2026, an increase of $38.2 million, or 31%, primarily due to a higher launch cadence with 18 Electron launch missions completed for the nine months ended September 30, 2026, versus 14 launch missions completed in the nine months ended September 30, 2025, and higher revenue per launch, partially offset by revenue recognized on over-time HASTE launch missions.

Previous wording

Cost of revenues increased by $87.9 million, or 47%, for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Space systems cost of revenue was $212.4 million for the six months ended June 30, 2026, an increase of $87.8 million, or 70%, primarily due to acquisitions and spacecraft manufacturing growth. Launch services cost of revenues was $60.9 million for the six months ended June 30, 2026, an increase of $0.1 million.

Current wording

Cost of revenues increased by $167.9 million, or 59%, for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025. Space systems cost of revenue was $355.9 million for the nine months ended September 30, 2026, an increase of $150.6 million, or 73%, primarily due to acquisitions and spacecraft manufacturing growth. Launch services cost of revenues was $95.2 million for the nine months ended September 30, 2026, an increase of $17.3 million, or 22%, primarily due to a higher launch cadence.

Previous wording

Research and development expenses increased by $41.7 million, or 34%, for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to Neutron development progress, incremental research and development spend at recently acquired businesses, increased staff and staff-related expenses as a result of hiring and prototype spend focused on expanding our spacecraft and spacecraft components product portfolio.

Current wording

Research and development expenses increased by $69.4 million, or 36%, for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025, primarily due to Neutron development progress, incremental research and development spend at recently acquired businesses, 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 expenses increased by $32.4 million, or 41%, for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to incremental selling, general and administrative spend at recently acquired businesses, cancellations of RSUs resulting in a one-time stock-based compensation expense of $11.2 million, increased staff and staff-related expenses to support revenue growth and increased transaction expenses related to managing an active acquisition pipeline.

Current wording

Selling, general and administrative expenses increased by $57.7 million, or 46%, for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025, primarily due to incremental selling, general and administrative spend at recently acquired businesses, cancellations of RSUs resulting in a one-time stock-based compensation expense of $11.2 million, increased staff and staff-related expenses to support revenue growth and increased transaction expenses related to managing an active acquisition pipeline.

Previous wording

Interest expense decreased by $12.3 million, or 87%, for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to conversions of the Convertible Senior Notes and the extinguishment of the Trinity Loan Agreement.

Current wording

Interest expense decreased by $19.3 million, or 90%, for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025, primarily due to conversions of the Convertible Senior Notes and the extinguishment of the Trinity Loan Agreement.

Previous wording

Interest income increased by $17.4 million, or 189%, for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to higher cash and cash equivalents balances held in interest bearing accounts.

Current wording

Interest income increased by $39.3 million, or 247%, for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025, primarily due to higher cash and cash equivalents balances held in interest bearing accounts.

Previous wording

Loss on foreign exchange increased by $1.2 million, or 189%, for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to fluctuations on the foreign exchange rates of the New Zealand Dollar, Euro and Canadian Dollar as compared to the U.S. Dollar.

Current wording

Loss on foreign exchange increased by $1.1 million, or 464%, for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025, primarily due to fluctuations in the foreign exchange rates of the New Zealand Dollar, Euro and Canadian Dollar as compared to the U.S. Dollar.

Previous wording

Provision for income taxes increased by $1.4 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The effective tax rate was (3.9)% for the six months ended June 30, 2026, compared to (1.7)% for the six months ended June 30, 2025. 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

Provision for income taxes increased by $46.0 million for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025. The effective tax rate was (4.2)% for the nine months ended September 30, 2026, compared to 21.1% for the nine months ended September 30, 2025. The change was primarily driven by the release of the valuation allowance related to the deferred tax liability from the GEOST acquisition in the nine months ended September 30, 2025. 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.

Previous 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 June 30, 2026, we had $2.1 billion of cash and cash equivalents and $258.1 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 Offerings and payments received from customers.

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 September 30, 2026, we had $4.4 billion of cash and cash equivalents and $256.2 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 Offerings and payments received from customers.

Previous wording

On June 28, 2026, we entered into a definitive agreement to acquire all outstanding shares of Iridium for $54 per share in a cash and stock transaction. This represents an enterprise value of approximately $8.0 billion. The Iridium Transaction is expected to require over $3.0 billion in cash related to share consideration payments, repayment of certain outstanding Iridium acquisition indebtedness and payment of transaction fees and expenses, and approximately $1.8 billion of additional cash to repay or refinance Iridium term loan indebtedness, if necessary. The transaction is expected to close in 2027, subject to customary closing conditions, including approval by Iridium’s stockholders and regulatory approval.

Current wording

On June 28, 2026, we entered into a definitive agreement to acquire all outstanding shares of Iridium for $54 per share in a cash and stock transaction. This represents an enterprise value of approximately $8.0 billion. The Iridium Transaction is expected to require over $3.0 billion in cash related to share consideration payments, repayment of certain outstanding Iridium acquisition indebtedness and payment of transaction fees and expenses.

Previous wording

As of June 30, 2026, our total minimum lease payments were $178.5 million, of which $23.6 million is due in the following twelve months. For details regarding our indebtedness and lease obligations as of June 30, 2026, refer to Note 11 and Note 14, respectively, to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Current wording

As of September 30, 2026, our total minimum lease payments were $176.2 million, of which $23.9 million is due in the following twelve months. For details regarding our indebtedness and lease obligations as of September 30, 2026, refer to Note 11 and Note 14, respectively, to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

Our capital expenditures for the six months ended June 30, 2026 were $53.1 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, including the acquisition of Iridium, 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.

Current wording

Our capital expenditures for the nine months ended September 30, 2026 were $84.2 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, including the acquisition of Iridium, 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

As of June 30, 2026, there was $13.4 million outstanding under our 4.250% Convertible Senior Notes due 2029 (the “Convertible Notes”), before unamortized discount and debt issuance costs of $0.2 million. For details regarding our outstanding loan agreements, refer to Note 11 of our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Current wording

As of September 30, 2026, there was $1.3 million outstanding under our 4.250% Convertible Senior Notes due 2029 (the “Convertible Notes”). For details regarding our outstanding loan agreements, refer to Note 11 of our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

For the six months ended June 30, 2026, net cash used in operating activities of $134.4 million consisted of $94.3 million in net loss, $95.7 million in non-cash activities and $135.9 million in cash used in operating assets and liabilities. Included in the non-cash activities are $47.7 million in stock-based compensation expense and $35.9 million in depreciation and amortization. Included in the cash used in operating assets and liabilities are $73.3 million in inventories, $63.0 million in accounts receivable, $40.3 million in other non-current assets, $30.1 million in contract assets, $6.9 million in prepaids and other current assets, $6.5 million in non-current lease liabilities, partially offset by cash provided by operating assets and liabilities of $78.8 million in contract liabilities and $9.0 million in accrued expenses.

Current wording

For the nine months ended September 30, 2026, net cash used in operating activities of $127.3 million consisted of $174.0 million in net loss, $166.5 million in non-cash activities and $119.8 million in cash used in operating assets and liabilities. Included in the non-cash activities are $66.0 million in stock-based compensation expense, $57.7 million in depreciation and amortization, $27.3 million loss on extinguishment of debt related to the termination of the Bridge Loan commitment, $9.9 million of noncash lease expense and $7.5 million lower of cost or market inventory valuation adjustments. Included in the cash used in operating assets and liabilities are $83.7 million in inventories, $68.5 million in accounts receivable, $60.8 million in contract assets, $48.6 million in other non-current assets, $20.5 million in prepaids and other current assets and $10.8 million in non-current lease liabilities, partially offset by cash provided by operating assets and liabilities of $144.5 million in contract liabilities and $11.9 million in employee benefits payable.

Previous wording

For the six months ended June 30, 2026, net cash used in investing activities of $84.6 million consisted of $53.1 million of capital equipment and infrastructure investments and $44.3 million of cash paid for business combinations, partially offset by net maturities of marketable securities of $12.1 million.

Current wording

For the nine months ended September 30, 2026, net cash used in investing activities of $113.9 million consisted of $84.2 million of capital equipment and infrastructure investments and $44.3 million of cash paid for business combinations, partially offset by net maturities of marketable securities of $13.8 million.

Previous wording

For the six months ended June 30, 2026, net cash provided by financing activities of $1,523.4 million consisted of $1,512.9 million of net proceeds from the issuance of common stock under the ATM Equity Offerings and $8.8 million of proceeds from Employee Stock Purchase Plan.

Current wording

For the nine months ended September 30, 2026, net cash provided by financing activities of $3,863.9 million consisted of $3,875.2 million of net proceeds from the issuance of common stock under the ATM Equity Offerings and $13.6 million of proceeds from Employee Stock Purchase Plan, partially offset by $27.3 million of debt issuance and extinguishment costs related to the terminated Bridge Loan commitment.