Investing№ 45Nasdaq: RKLB

Rocket Lab

Rocket Lab builds satellites and small rockets, turned $769M of revenue into a $453M owner cash outflow over the past year, and is buying Iridium while its Neutron rocket slips to 2027.

Updated Fiscal year is the calendar year32 min readPedrum Shokouhi

Can be disrupted

Research, not investment advice. Figures as of .

Key numbers

  • Revenue$769M (calculated)TTM Jun 2026; up 62% in Q2 on a year earlier [2][3]
  • Owner cash flow−$453M (calculated)TTM Jun 2026, after stock pay; net loss $166M [2][3]
  • Backlog$2.36B (reported)30 June 2026; about 45% due within 12 months [2]
  • Government customer42% (reported)Share of first-half 2026 revenue, one customer [2]
  • Iridium price$48.89 (calculated)A share at today’s close: $27 cash plus 0.4000 shares; announced as $54 [4][1]
  • Neutron2027 (reported)First launch, moved from 2026 on 14 October [5]

The answer

  1. Rocket Lab builds satellites and small rockets, and in the twelve months to June 2026 it turned $769M of revenue into a net loss of $166M and an owner cash outflow of $453M, while it waits on Neutron, a larger reusable rocket now due in 2027, and on a $54-a-share purchase of Iridium (calculated).3254
  2. I value it at $10 a share, in a range of $3 to $25, because on my numbers even a Rocket Lab that wins its market makes money late, and Iridium, the one part that earns cash today, is worth about $5.5B to me against about $7.2B being paid for it, debt included (estimate).67
  3. At $54.73 the price is 465% above my base value and 121% above my bull; to justify it, Rocket Lab’s own business would need to hand its owners about $11B a year from 2036, a third of SpaceX’s whole revenue today, and my margin-of-safety price is $4 (estimate).18

Six questions, one line each

Why
Governments want more satellites, faster, from someone other than SpaceX, and Rocket Lab can design, build and launch them; backlog has reached $2.36B, up 137% in a year.92 →
The moat
Thin today: Electron flew 18 orbital missions in 2025 against SpaceX’s 165, and the parts business competes on delivery; the durable asset in view is Iridium’s L-band spectrum, which Rocket Lab does not yet own.1011 →
The advantage
By its own account it is the only company besides SpaceX that sells launch, satellites and the parts inside them under one roof, and that shows in contracts such as the Space Force’s $397M SB-AMTI award, where it supplies both spacecraft and rocket.911 →
Management
Sir Peter Beck founded it, owns about 5.9% after the Iridium shares and gave up his salary in March; his family trust then sold $286M of stock in July, at $82 to $102, under a plan adopted three days before the pay change (calculated).12132 →
Margin of safety
Below $4, where my $3 bear value is three quarters of the price paid; the stock last closed that low in May 2024 (estimate).1 →
The price
$54.73 at the close in Q4 2026, 64% below the May high, 465% above my base value and about 44 times the past year’s revenue on enterprise value before Iridium (calculated).12 →

The business

Rocket Lab is two businesses that share a factory floor. The smaller one launches rockets. The larger one builds spacecraft and the parts that go inside other people’s spacecraft: solar cells, reaction wheels, star trackers, radios, separation systems and flight software.3 Headquarters are in Long Beach, California. Rockets are built and tested in New Zealand and launched from its own site at Mahia, on the North Island, or from NASA’s Wallops Island in Virginia.3 The year is the calendar year.

The rocket is Electron. It is built of carbon composite, its 3D-printed engines use electric pumps, and it carries up to 300 kg to low orbit.3 Through 30 June 2026 it had launched 87 times and put more than 250 spacecraft in orbit.2 The Mahia site has two pads and, the company says, room for up to 120 launches a year.3 A suborbital version called HASTE flies test vehicles for missile-defence programmes. In July the Space Force signed for 12 HASTE flights with options for six more, worth up to $266M.2 That is $14.8M to $22.2M a flight, depending on whether the options are used, though Spice said the contract also pays for infrastructure, against my estimate of about $9.5M for an ordinary Electron mission (calculated).14

Space systems is where the revenue is. In the second quarter of 2026 it brought in $189.5M of the $234.1M total, and launch $44.6M.2 Over the twelve months to June, space systems was 71% of revenue (calculated). It was built partly by purchase. Rocket Lab bought Sinclair Interplanetary in 2020, Advanced Solutions and Planetary Systems in 2021, SolAero in 2022, GEOST in 2025, and the German laser-link maker Mynaric and the robotics firm Motiv this year.2 Mynaric cost $155.3M, nearly all paid in 2,277,002 new shares.15

Revenue and operating loss

Calendar years, US$ millions

  • Revenue, TTM $769M
  • Operating loss, TTM −$224M
Revenue and operating lossRevenue and GAAP operating loss by year, 2020 to 2025, and the twelve months to June 2026. Revenue went from $35M to $602M in 2025 and $769M over the twelve months; the operating loss from $55M to $229M in 2025 and $224M over the twelve months.−$300M$0$300M$600M$900M’20’22’24TTMRevenue, 2020: $35MRevenue, 2021: $62MRevenue, 2022: $211MRevenue, 2023: $245MRevenue, 2024: $436MRevenue, 2025: $602MRevenue, TTM Jun 2026: $769MOperating income, 2020: −$55MOperating income, 2021: −$102MOperating income, 2022: −$135MOperating income, 2023: −$178MOperating income, 2024: −$190MOperating income, 2025: −$229MOperating income, TTM Jun 2026: −$224MRevenue and operating lossRevenue and GAAP operating loss by year, 2020 to 2025, and the twelve months to June 2026. Revenue went from $35M to $602M in 2025 and $769M over the twelve months; the operating loss from $55M to $229M in 2025 and $224M over the twelve months.−$300M$0$300M$600M$900M’20’21’22’23’24’25TTMRevenue, 2020: $35MRevenue, 2021: $62MRevenue, 2022: $211MRevenue, 2023: $245MRevenue, 2024: $436MRevenue, 2025: $602MRevenue, TTM Jun 2026: $769MOperating income, 2020: −$55MOperating income, 2021: −$102MOperating income, 2022: −$135MOperating income, 2023: −$178MOperating income, 2024: −$190MOperating income, 2025: −$229MOperating income, TTM Jun 2026: −$224MRevenue and operating lossRevenue and GAAP operating loss by year, 2020 to 2025, and the twelve months to June 2026. Revenue went from $35M to $602M in 2025 and $769M over the twelve months; the operating loss from $55M to $229M in 2025 and $224M over the twelve months.−$300M$0$300M$600M$900M’20’21’22’23’24’25TTMRevenue, 2020: $35MRevenue, 2021: $62MRevenue, 2022: $211MRevenue, 2023: $245MRevenue, 2024: $436MRevenue, 2025: $602MRevenue, TTM Jun 2026: $769MOperating income, 2020: −$55MOperating income, 2021: −$102MOperating income, 2022: −$135MOperating income, 2023: −$178MOperating income, 2024: −$190MOperating income, 2025: −$229MOperating income, TTM Jun 2026: −$224M
TTM is the four quarters to 30 June 2026: 2025 plus the first half of 2026 less the first half of 2025. Rocket Lab has not reported an operating profit in any year shown. Source 10-K 2025; 10-K 2021; 10-Q Q2 2026; SEC XBRL [3][16][2][17]. Figures as reported or calculated from reported data.
Show the numbers
Revenue and operating loss
202020212022202320242025TTM Jun 2026
Revenue (reported)$35M$62M$211M$245M$436M$602M$769M
Operating income (reported)−$55M−$102M−$135M−$178M−$190M−$229M−$224M

Who pays

Mostly governments. One government customer was 42% of revenue in the first half of 2026.2 The 10-Q does not name it, but the backlog chart below shows where it comes from. In December 2025 the Space Development Agency awarded Rocket Lab $816M to build 18 missile-tracking satellites for its Tranche 3 layer, on top of an earlier Tranche 2 order.3 In the second quarter it added a $397M Space Force award to build Flatellite spacecraft for the SB-AMTI programme, which tracks aircraft from space, and to launch them on Neutron, plus more than $160M for three geostationary satellites.9 Those figures include options.

The CFO, Adam Spice, said the SDA programmes carry gross margins in the mid-30s.14 That matters for reading the numbers. Revenue from awards like these builds while the satellites are made and falls away once they are delivered, unless the next tranche is won. That is my reading of how such programmes run; the company has not given a year-by-year shape. Spacecraft platforms are, in his words, the lower-margin piece. Some components earn more than 70%.14

Backlog

Remaining performance obligations, US$ millions

  • Backlog, 30 June 2026 $2,356M
BacklogRemaining performance obligations at each year end, from $82M at December 2020 to $1,847M at December 2025 and $2,356M at June 2026.$0$1B$2B$3B’20’22’24Jun ’26Backlog, Dec 2020: $82MBacklog, Dec 2021: $242MBacklog, Dec 2022: $504MBacklog, Dec 2023: $1,046MBacklog, Dec 2024: $1,067MBacklog, Dec 2025: $1,847MBacklog, Jun 2026: $2,356MBacklogRemaining performance obligations at each year end, from $82M at December 2020 to $1,847M at December 2025 and $2,356M at June 2026.$0$1B$2B$3B’20’21’22’23’24’25Jun ’26Backlog, Dec 2020: $82MBacklog, Dec 2021: $242MBacklog, Dec 2022: $504MBacklog, Dec 2023: $1,046MBacklog, Dec 2024: $1,067MBacklog, Dec 2025: $1,847MBacklog, Jun 2026: $2,356MBacklogRemaining performance obligations at each year end, from $82M at December 2020 to $1,847M at December 2025 and $2,356M at June 2026.$0$1B$2B$3B’20’21’22’23’24’25Jun ’26Backlog, Dec 2020: $82MBacklog, Dec 2021: $242MBacklog, Dec 2022: $504MBacklog, Dec 2023: $1,046MBacklog, Dec 2024: $1,067MBacklog, Dec 2025: $1,847MBacklog, Jun 2026: $2,356M
The two steps, in late 2023 and late 2025, are the Space Development Agency’s Tranche 2 and Tranche 3 satellite orders. About 45% of the June figure is due within twelve months. Source SEC XBRL; 10-K 2025; 10-Q Q2 2026 [17][3][2]. Figures as reported.
Show the numbers
Backlog
Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025Jun 2026
Backlog (reported)$82M$242M$504M$1,046M$1,067M$1,847M$2,356M

The backlog

Backlog was $2,356M at 30 June 2026, up from $995M a year earlier. Space systems was $1,415.8M of it and launch $940.2M. About 45% is due within twelve months.2 Management says launch backlog is above 90 launches, its highest.9 Two cautions. Backlog moves in steps when a large government order lands, so it can sit flat for a year, as it did through 2024. And contracts can slip. The 10-Q says a 2022 order from MDA for 17 satellite buses is running late, partly on supplier delays, and that MDA may claim liquidated damages that Rocket Lab cannot yet estimate.2

Neutron

Neutron is the reason the stock trades where it does. Announced in March 2021, it is a medium rocket meant to carry about 13,000 kg to low orbit with a reusable first stage.2 That puts it in the class of most satellite launches, which Electron is too small for. Management prices it at $50M to $55M a flight and plans a ramp of one, three and five flights, with the tenth flight as the point where it scales.14

The first launch was once expected in 2024, then 2025, then 2026.18 On 21 January 2026 a first-stage tank ruptured during a hydrostatic pressure test.19 Rocket Lab traced it to a layup done by a contractor by hand, and moved the work in-house to an automated fibre-placement machine.20 Then, on 14 October, it said voids had been found in the carbon layers of a propellant dome made on that machine, and that the first launch would move into 2027.520 As quoted by The Register, Beck said: “we identified an issue with the manufacturing process for the propellant dome.”18 Testing is to run into the first quarter of 2027, and only then will a date be set.18 The 8-K points to a slide presentation on Rocket Lab’s investor site. The site refused my request, so what I know of the briefing comes from The Register and Via Satellite. In August, Neutron had been due at the pad in the fourth quarter.2

Spice has said adjusted EBITDA would turn positive in the quarter after a successful Neutron test flight, and free cash flow 18 to 24 months after that.14 So every quarter Neutron slips moves back the date the company pays for itself.

Iridium

On 28 June Rocket Lab agreed to buy Iridium Communications, which runs 66 satellites in low orbit and sells voice, data and tracking to about 2.7 million subscribers, with the US government as its largest single customer.421 Each Iridium share gets $27.00 in cash and a number of Rocket Lab shares. The number floats inside a collar: 0.4000 shares if Rocket Lab is at or below $67.50, 0.2400 at or above $112.50, and enough in between to make $27.00.4 At today’s price the ratio sits at the floor, so the deal is worth $48.89 a share to Iridium holders, not the $54.00 announced (calculated).1

Iridium’s holders approved it on 24 September, with 99.6% of the votes cast in favour. The US antitrust waiting period expired in August. FCC consent and some foreign approvals are still needed, and both companies expect to close by mid-2027.2122 Rocket Lab raised most of the cash part by selling about 29.3M new shares for about $1.944B through an at-the-market programme, completed by 15 September, and Iridium’s $1.775B term loan stays in place with a Rocket Lab guarantee.23

Iridium is a different kind of business from the rest of Rocket Lab. Revenue was $871.7M in 2025, and its operations produced $400.1M of cash, of which it spent $100.3M on equipment.24 In the third quarter it earned $135.6M of operational EBITDA on $245.7M of revenue.21 That is one large, steady cash flow arriving inside a company that has never had one.

The two businesses

Segment revenue, US$ millions

  • Space systems, TTM $544M
  • Launch services, TTM $225M
The two businessesRevenue by segment. Space systems rose from $173M in 2023 to $544M over the twelve months to June 2026; launch from $72M to $225M. Gross margin over the twelve months: space systems 33.0%, launch 47.6%.$0$200M$400M$600M202320242025TTM Jun 2026Space systems, 2023: $173MSpace systems, 2024: $311MSpace systems, 2025: $403MSpace systems, TTM Jun 2026: $544MLaunch services, 2023: $72MLaunch services, 2024: $125MLaunch services, 2025: $199MLaunch services, TTM Jun 2026: $225MThe two businessesRevenue by segment. Space systems rose from $173M in 2023 to $544M over the twelve months to June 2026; launch from $72M to $225M. Gross margin over the twelve months: space systems 33.0%, launch 47.6%.$0$200M$400M$600M202320242025TTM Jun 2026Space systems, 2023: $173MSpace systems, 2024: $311MSpace systems, 2025: $403MSpace systems, TTM Jun 2026: $544MLaunch services, 2023: $72MLaunch services, 2024: $125MLaunch services, 2025: $199MLaunch services, TTM Jun 2026: $225MThe two businessesRevenue by segment. Space systems rose from $173M in 2023 to $544M over the twelve months to June 2026; launch from $72M to $225M. Gross margin over the twelve months: space systems 33.0%, launch 47.6%.$0$200M$400M$600M202320242025TTM Jun 2026Space systems, 2023: $173MSpace systems, 2024: $311MSpace systems, 2025: $403MSpace systems, TTM Jun 2026: $544MLaunch services, 2023: $72MLaunch services, 2024: $125MLaunch services, 2025: $199MLaunch services, TTM Jun 2026: $225M
Segment gross margin over the twelve months: space systems 33.0%, launch 47.6%. In 2023 launch earned 11.2%. Source 10-K 2025, segment note; 10-Q Q2 2026, Note 18 [3][2]. Calculated from reported figures.
Show the numbers
The two businesses
202320242025TTM Jun 2026
Space systems revenue (reported)$173M$311M$403M$544M
Space systems gross margin (calculated)25.1%26.2%31.3%33.0%
Launch revenue (reported)$72M$125M$199M$225M
Launch gross margin (calculated)11.2%27.6%40.8%47.6%

The moat

I look for two things. Can a competitor take the customer at the same price, and would the customer even want to switch? On both, Rocket Lab today is weaker than its share price suggests, with one exception it has agreed to buy.

Launch

Electron is a real achievement. In 2025 it was, by the company’s account, the second most frequently launched orbital rocket in the world.3 BryceTech counted 18 orbital launches for Rocket Lab against 165 for SpaceX and 68 for China’s state launcher.10 But second place in launch is a long way behind first. SpaceX also flies rideshare missions that put dozens of small satellites up at once, and its share of all mass to orbit is far larger than its share of launches.10 Electron wins customers who need a particular orbit at a particular time. That is a niche with loyal buyers, and it does not keep a determined rival out.

Two things protect it a little. Mahia is a private site, so Rocket Lab sets its own schedule there, and a treaty between the United States and New Zealand lets it fly US technology from New Zealand soil, which the 10-K calls a competitive advantage over other launchers outside the US.3 Neither stops another rocket from taking the same customer.

Neutron would compete in a bigger market, but it has not flown, and the most valuable thing a rocket can have is a long record of flying. Electron took eight years of flights to build that record.3 A new rocket starts again at zero.

Space systems

The parts business has some genuine stickiness. Once a solar array or star tracker has flown on a satellite design, the buyer tends to stay with it, because changing a qualified part means testing again. Spice’s comment that some components earn more than 70% gross margins is consistent with that.14 The satellite contracts are another matter. They are won in competitions, mostly from governments, at mid-30s margins, and the next tranche is a new competition.14 One customer was 42% of revenue in the first half.2 A buyer that large has the power, not the supplier.

The one real wall: spectrum

The thing that is hardest to copy is not a rocket. It is a licence. Iridium holds L-band spectrum that works through rain and inside buildings, and is used for safety services at sea and in the air.11 Beck said on the August call that you could have all the S-band spectrum and satellites you wanted, and still not do certain things without L-band.11 Others clearly think spectrum is worth paying for. The proxy records that SpaceX bought spectrum licences from EchoStar in September 2025, that Amazon agreed to buy Globalstar in April 2026, and that Iridium’s board ran a sale process because of both.6

But spectrum is defended at a regulator, and that is visible already. In August SpaceX told the FCC it does not oppose the deal, but asked it to weigh Iridium’s record of more than 50 petitions against rival satellite systems in eight months.25 The FCC’s site refused my request for SpaceX’s letters, so that is the press account. The FCC’s own index lists a further SpaceX letter in the same docket on 15 October, which I also could not read.42 The value of a licence depends on how hard others can push into the same band.

Evidence it is narrowing

Neutron has slipped three years. In that time SpaceX has kept flying, and Iridium’s board reviewed the threat from SpaceX’s new spectrum in its own meetings.6 And the company is buying its way into each new area, which says the protection in those areas belonged to someone else first.

My judgement: Rocket Lab has a strong position in a niche and a good parts business, not yet a wall around either. If Iridium closes, it will own one asset that is hard to replicate. Whether Rocket Lab can widen that wall by building and launching Iridium’s next satellites more cheaply than anyone else is the question I can’t answer yet.

The competitive advantage

What Rocket Lab really has is range. Beck’s line is that the large space companies of the future will build their own satellites and launch them on their own rockets, and that only two companies can do that now.11 The other is SpaceX. I think that is true as a description. The question is whether it is an advantage a customer pays more for.

There is some evidence it is. For SB-AMTI the Space Force bought spacecraft and launch together, and Rocket Lab says it is one of only two vendors doing both on that programme.9 Selling a whole mission lets it keep the margin that would otherwise go to the launcher or to the parts makers, and it lets it promise a schedule nobody else controls. The Flatellite award is also the first large order that depends on Neutron flying.

Against the alternatives

The table puts the three businesses on one line. Rocket Lab’s figure counts 692M shares: those outstanding on 5 August, the ATM shares since, Beck’s preferred stock, the collared forward shares, convertible notes and employee awards. It does not yet include the Iridium shares.

Rocket Lab against the two companies it is most often set against

Market values at the Q4 2026 close; revenue and free cash flow, operating cash less capital spending, over the latest twelve months.

Market value against revenue
Market valueRevenueValue to revenueFree cash flow
Rocket Lab, standalone (calculated)$37.9B$0.77B49 times−$0.37B
Iridium (calculated)$4.8B$0.90B5.3 times$0.28B
SpaceX (calculated)$1,830B$32.0B57 times−$39.3B
Rocket Lab’s revenue is the four quarters to June 2026; Iridium’s the four to September 2026; SpaceX’s the four to September 2026, from its 10-Q and its prospectus, with capital spending including capitalized interest. Iridium’s market value uses 105.96M shares; its cash figure is operating cash flow of $400.1M in 2025 plus $281.7M in the first nine months of 2026, less $291.5M a year earlier, less capital spending on the same basis. I leave out AST SpaceMobile and Firefly, whose revenue is too small for the ratio to mean much. Source 10-Q Q2 2026; Iridium 10-Q Q3 2026 and XBRL; SpaceX 10-Q Q3 2026 and 424B4; Nasdaq [2][7][24][8][26][27][1][28]. Calculated from reported figures.

Two comparisons stand out. Rocket Lab on its own is valued at about 49 times revenue, close to the 57 times the market puts on SpaceX, which flies nine launches for every one of Rocket Lab’s and has Starlink.10 My SpaceX page already finds its price well above what I can support. And Iridium, a profitable business with a licence that cannot be copied, is valued at about 5.3 times revenue. The market is paying for Rocket Lab’s future, and paying very little for Iridium’s present. After the merger the same holder will own both.

Where it wins

Schedule, first. Owning a launch site and a rocket means a government customer with a tight date gets one supplier and one phone number. Speed of building, second. Its satellites and components have flown on more than 1,700 missions, including to the Moon and Mars, which few companies of its size can show.9 The components, third. Solar cells from Albuquerque and other parts sell to rivals as well as to Rocket Lab’s own satellites, which spreads the factory cost.3

Where it loses

Scale, by a distance. SpaceX’s Space segment alone took in $4.2B over the twelve months to September, 5.4 times Rocket Lab’s whole revenue (calculated).826 Cost per kilogram, until Neutron flies and is reused. And money. Rocket Lab still funds its losses by selling shares, so every year of delay costs its holders a slice of the company. Its range is real, but range without scale is a good position, not yet a winning one.

Management

Sir Peter Beck, 48, founded Rocket Lab in New Zealand and is its chairman, president and chief executive.29 The company still looks like its founder: it designs most things itself and moves fast. Adam Spice is the finance chief.29 In June the company hired Agostino Ricupati from Cooper Companies as chief accounting officer, taking that role from Spice.2 For a company that has bought seven businesses and is about to buy an eighth, a separate accounting chief is overdue.

How they are paid

Until this year the pay was simple. Beck had a salary of $800,000 and grants of restricted stock units that vest with time, not with any result. His reported pay was $6.8M in 2025 and $20.1M in 2024.29 The proxy says the company’s approach is base salary plus periodic long-term awards, primarily time-based RSUs, and that no discretionary bonuses were paid for 2025.29 There are no targets for returns on capital, cash flow, Neutron dates or anything else. Time-based stock pays for the share price going up, whatever drives it.

On 30 March 2026 Beck cut his salary to $1, or the minimum New Zealand law requires, gave up any bonus, and forfeited all 392,155 of his unvested RSUs, worth about $22.5M at that day’s close (calculated).121 The 8-K says his focus is long-term appreciation of shareholder value rather than short-term cash or equity incentives.12 That is a strong signal, and an unusual one.

What he owns, and what he sold

The other half of the record matters as much. Beck’s family trust, the Equatorial Trust, holds his stake. On 27 March 2026, three days before the pay change, the trust adopted a Rule 10b5-1 trading plan.13 In May it converted 5,000,000 preferred shares to common, and between 6 and 8 July, a week after the Iridium deal was announced, the plan sold 3,275,779 shares at about $82 to $102, for $286.4M (calculated).13 In December 2025 the trust had sold 2,500,000 shares for about $141M.13 Over the past year that is about $430M (calculated).

A 10b5-1 plan is meant to take the timing out of the holder’s hands, and the plan’s sales are what such plans are for. I draw no conclusion about intent. What I can say is what the numbers show. Beck still controls about 43.2M shares: 40.95M preferred, 1.72M common in the trust and 0.49M held directly (calculated).132 At $54.73 that is about $2.36B, about 5.9% of the company after the Iridium shares (calculated). His own money in Rocket Lab is very large, and he has also taken a lot out near the highs.

The preferred stock carries more than its share count. While the trust and permitted transferees hold at least 5% of the company, the preferred elects at least 10% of the directors as a separate class.2 Beck sits on the board as that director.29 Spice, the finance chief, reported sales of about 1.84M shares for about $138M over the past year, and has pledged 622,452 shares against a loan, with board approval (calculated).3029 No director or officer filed a purchase on the open market in that year.30

What they did with capital

The cycle here is short, five years as a public company, so I judge it on what was raised and what it bought. Weighted shares were 466M in 2022 and 630M in the second quarter of 2026; with the September sale, Beck’s preferred, the collared forwards, awards and the Iridium shares, the count I use is 735M, about 58% more than in 2022 (calculated).172 That dilution paid for Neutron, the acquisitions and the cash part of Iridium.

The selling was well timed. In the second quarter of 2026 Rocket Lab sold 8.15M shares through its ATM for $1,068M after costs, about $131 a share, near the May high.2 The September sale was at about $66.36 (calculated).23 The collared forwards set a floor on another 7.45M shares worth at least $474M.2 A management that sells stock when buyers are generous is doing right by the holders who stay, and on my numbers these sales were the best capital decisions of the year.

The buying is harder to praise. The proxy sets out how the Iridium price was reached. Rocket Lab opened on 15 April at $42.50 a share, all in stock. The only other bidder that made an offer, called Party A, proposed $41 to $45 in cash. Rocket Lab went to $52, then to $54, half in cash, and agreed a collar that protects Iridium holders if Rocket Lab’s shares fall.6 Iridium’s adviser, Evercore, valued Iridium at $29.97 to $45.54 a share on its discounted cash flow.6 So Rocket Lab paid above the other bidder and above the top of the seller’s own adviser’s range, and took the share-price risk itself. The collar has since done its job for Iridium: at today’s price the stock part is worth $21.89, not $27.00 (calculated).

Following the incentives, then: Beck is paid in the share price alone, and owns enough that the share price over ten years matters far more to him than any salary. That pays him to build. It does not pay him to be careful with the price of acquisitions, or to hold back from issuing stock when it is dear, and nothing in the pay plan asks for returns on the capital used. The record so far is a good builder and a confident buyer.

Financials

Rocket Lab became public in August 2021 by merging with a listed shell, and its filings give full figures from 2020. That is six years and the twelve months to June 2026, not ten. In that time revenue rose 22 times, from $35M to $769M, and the company has lost money at the operating line every year (calculated).1632

The improvement is real but slow. Gross margin went from −33.5% in 2020 to 34.4% in 2025 and 37.3% over the past twelve months (calculated). Launch drove most of it: its gross margin was 11.2% in 2023 and 40.8% in 2025.3 But research and development has grown nearly as fast as gross profit, because Neutron sits in it, and the operating loss in 2025, $229M, was the largest yet.3

Rocket Lab, six years and the latest twelve months

Calendar years, US dollars. TTM is the four quarters to 30 June 2026. 2020 shares are before the 2021 merger and are not comparable, so I leave them out. Owner cash flow is operating cash flow less capital spending less stock pay.

Financial summary by year
202020212022202320242025TTM Jun 2026
Revenue (reported)$35M$62M$211M$245M$436M$602M$769M
Revenue growth (calculated)–76.7%239.2%15.9%78.3%38.0%–
Gross profit (reported)−$12M−$2M$19M$51M$116M$207M$287M
Gross margin (calculated)−33.5%−3.1%9.0%21.0%26.6%34.4%37.3%
Research and development (reported)$19M$42M$65M$119M$174M$271M$312M
Selling, general and administrative (reported)$24M$58M$89M$110M$132M$165M$198M
Operating income (reported)−$55M−$102M−$135M−$178M−$190M−$229M−$224M
Net income (reported)−$55M−$117M−$136M−$183M−$190M−$198M−$166M
Operating cash flow (reported)−$28M−$72M−$106M−$99M−$49M−$166M−$222M
Capital spending (reported)$25M$26M$42M$55M$67M$156M$149M
Depreciation and amortization (reported)$9M$11M$30M$30M$34M$44M$62M
Stock pay (reported)$4M$33M$56M$54M$57M$71M$82M
Stock pay, share of revenue (calculated)11.9%52.4%26.4%21.9%13.0%11.8%10.6%
Owner cash flow (calculated)−$57M−$130M−$204M−$207M−$173M−$393M−$453M
Backlog at year end (reported)$82M$242M$504M$1,046M$1,067M$1,847M$2,356M
Weighted shares, millions (reported)–209.9466.2481.8495.9530.7629.7
Source 10-K 2025; 10-K 2021; 10-Q Q2 2026; SEC XBRL [3][16][2][17]. Figures as reported or calculated from reported data.

What an owner could really take out

Nothing yet. Over the twelve months to June the reported net loss was $166M. Operating cash flow was −$222M, capital spending $149M and stock pay $82M, so owner cash flow was −$453M (calculated).32 That is $287M worse than the reported loss. Three things explain the gap. Stock pay is a real cost paid in shares. Capital spending, which more than doubled in 2025 to $156M, runs well ahead of depreciation. And interest on the cash raised from shareholders, $26.6M in the first half of 2026 alone, flatters the net loss.9

How much of the capital spending is needed just to stand still? I can’t split it cleanly, because most of it is for Neutron and new capacity. If I charge only depreciation, $62M, as the cost of standing still, owner cash is still −$366M (calculated). Either way the business does not yet fund itself, and every dollar of the loss has come from new shares.

Net loss against the cash an owner put in

US$ millions. Owner cash flow is operating cash flow less capital spending less stock pay.

  • Net loss, TTM −$166M
  • Owner cash flow, TTM −$453M
Net loss against the cash an owner put inNet loss and owner cash flow by year. Over 2020 to 2025 the net losses totalled $879M and owner cash flow was −$1,164M. Twelve months to June 2026: net loss $166M, owner cash flow −$453M.−$500M−$250M$0’20’22’24TTMNet income, 2020: −$55MNet income, 2021: −$117MNet income, 2022: −$136MNet income, 2023: −$183MNet income, 2024: −$190MNet income, 2025: −$198MNet income, TTM Jun 2026: −$166MOwner cash flow, 2020: −$57MOwner cash flow, 2021: −$130MOwner cash flow, 2022: −$204MOwner cash flow, 2023: −$207MOwner cash flow, 2024: −$173MOwner cash flow, 2025: −$393MOwner cash flow, TTM Jun 2026: −$453MNet loss against the cash an owner put inNet loss and owner cash flow by year. Over 2020 to 2025 the net losses totalled $879M and owner cash flow was −$1,164M. Twelve months to June 2026: net loss $166M, owner cash flow −$453M.−$500M−$250M$0’20’21’22’23’24’25TTMNet income, 2020: −$55MNet income, 2021: −$117MNet income, 2022: −$136MNet income, 2023: −$183MNet income, 2024: −$190MNet income, 2025: −$198MNet income, TTM Jun 2026: −$166MOwner cash flow, 2020: −$57MOwner cash flow, 2021: −$130MOwner cash flow, 2022: −$204MOwner cash flow, 2023: −$207MOwner cash flow, 2024: −$173MOwner cash flow, 2025: −$393MOwner cash flow, TTM Jun 2026: −$453MNet loss against the cash an owner put inNet loss and owner cash flow by year. Over 2020 to 2025 the net losses totalled $879M and owner cash flow was −$1,164M. Twelve months to June 2026: net loss $166M, owner cash flow −$453M.−$500M−$250M$0’20’21’22’23’24’25TTMNet income, 2020: −$55MNet income, 2021: −$117MNet income, 2022: −$136MNet income, 2023: −$183MNet income, 2024: −$190MNet income, 2025: −$198MNet income, TTM Jun 2026: −$166MOwner cash flow, 2020: −$57MOwner cash flow, 2021: −$130MOwner cash flow, 2022: −$204MOwner cash flow, 2023: −$207MOwner cash flow, 2024: −$173MOwner cash flow, 2025: −$393MOwner cash flow, TTM Jun 2026: −$453M
Interest on the cash raised narrows the net loss; in the first half of 2026 it was $26.6M. The gap between the bars widened in 2025 as capital spending more than doubled. Source 10-K 2025; 10-K 2021; 10-Q Q2 2026; SEC XBRL [3][16][2][17]. Calculated from reported figures.
Show the numbers
Net loss against the cash an owner put in
202020212022202320242025TTM Jun 2026
Net income (reported)−$55M−$117M−$136M−$183M−$190M−$198M−$166M
Operating cash flow (reported)−$28M−$72M−$106M−$99M−$49M−$166M−$222M
Capital spending (reported)$25M$26M$42M$55M$67M$156M$149M
Stock pay (reported)$4M$33M$56M$54M$57M$71M$82M
Owner cash flow (calculated)−$57M−$130M−$204M−$207M−$173M−$393M−$453M

Quality of earnings

The company’s preferred profit measures leave out stock pay, acquisition amortization and deal costs. Its adjusted EBITDA loss was $8.8M in the second quarter, against a GAAP operating loss of $57.5M.149 Stock pay was 10.6% of revenue over the twelve months (calculated). That second-quarter non-GAAP gross margin of 41.5% included a tariff refund that will not repeat, partly offset by a reserve against hardware for Neutron’s second flight.14 Guidance for the third quarter is 35% to 37%.9

Two smaller things are worth a line. Rocket Lab has lent money to three launch customers, interest-free until their launch and then at 9.5% to 12.6%.2 Lending to customers to win launch contracts tells you something about who has the power in small launch. And the company has a federal tax loss carryforward of $840.9M, which will shield profits for some years once they come.3

The balance sheet

At 30 June Rocket Lab had $2,129M of cash and $258M of marketable securities, against $13M of convertible notes left after most converted into 23.0M shares earlier in the year.2 The September share sale added about $1.94B gross.23 Iridium will take most of it. The 10-Q says the deal needs more than $3.0B of cash at closing, and Iridium brings a $1.775B term loan that will stay, at a higher rate after closing, plus its own Aireon loans.2237 My estimate of the combined position at closing is about $0.2B of net debt, close to even (estimate). The pro forma balance sheet adds $4.25B of intangible assets and $2.10B of goodwill, so for the first time most of what Rocket Lab owns on paper will be bought assets.31

The share price since listing

Last close of each calendar quarter, log scale: each gridline is ten times the one below

  • Close, Q4 2026 $54.73
The share price since listingQuarter-end closes on a log scale, from $16.13 at September 2021 to $54.73. The lowest close was $3.53 on 15 April 2024 and the highest $150.23 on 27 May 2026.$1$10$100$300’22’23’24’25’26The share price since listingQuarter-end closes on a log scale, from $16.13 at September 2021 to $54.73. The lowest close was $3.53 on 15 April 2024 and the highest $150.23 on 27 May 2026.$1$10$100$300’22’23’24’25’26The share price since listingQuarter-end closes on a log scale, from $16.13 at September 2021 to $54.73. The lowest close was $3.53 on 15 April 2024 and the highest $150.23 on 27 May 2026.$1$10$100$300’22’23’24’25’26
From the April 2024 low to the May 2026 high the shares rose 43 times; they have since fallen 64%. Source Nasdaq historical [1]. Calculated from reported closes.

Valuation

First, how this goes badly wrong

Before any numbers, I ask what would most likely ruin the business or the investment, and work back. Here there are three, and they are not equally likely.

Neutron never becomes a business. It flies late, or flies but cannot be reused cheaply, or flies rarely. Then Rocket Lab is a small-rocket company and a government contractor with mid-30s margins, valued today at nearly fifty times revenue. Without Neutron, my base value is $7 a share (estimate). Three target years have already passed.18

Iridium costs more than it earns. Its management’s own long forecast shows unlevered free cash flow of $529M in 2030 and −$21M in 2031, then $28M to $135M a year to 2035, as the satellites are replaced.6 The proxy says that version was not given to Rocket Lab.6 If the replacement costs what Iridium planned, the cash this deal buys arrives for about four years and then mostly stops for five, while SpaceX and Amazon buy spectrum of their own.6

Iridium’s cash, before and after the new satellites

Iridium management’s extended forecast, unlevered free cash flow, US$ millions

  • Unlevered free cash flow, 2030 then 2031 $529M, then −$21M
Iridium’s cash, before and after the new satellitesIridium management’s extended forecast of unlevered free cash flow: $395M in 2027, rising to $529M in 2030, then −$21M in 2031 and $28M to $135M a year to 2035 as the constellation is replaced.−$100M$0$200M$400M$600M’27’29’31’33’35Unlevered free cash flow, 2027: $395MUnlevered free cash flow, 2028: $444MUnlevered free cash flow, 2029: $484MUnlevered free cash flow, 2030: $529MUnlevered free cash flow, 2031: −$21MUnlevered free cash flow, 2032: $28MUnlevered free cash flow, 2033: $66MUnlevered free cash flow, 2034: $103MUnlevered free cash flow, 2035: $135MIridium’s cash, before and after the new satellitesIridium management’s extended forecast of unlevered free cash flow: $395M in 2027, rising to $529M in 2030, then −$21M in 2031 and $28M to $135M a year to 2035 as the constellation is replaced.−$100M$0$200M$400M$600M’27’28’29’30’31’32’33’34’35Unlevered free cash flow, 2027: $395MUnlevered free cash flow, 2028: $444MUnlevered free cash flow, 2029: $484MUnlevered free cash flow, 2030: $529MUnlevered free cash flow, 2031: −$21MUnlevered free cash flow, 2032: $28MUnlevered free cash flow, 2033: $66MUnlevered free cash flow, 2034: $103MUnlevered free cash flow, 2035: $135MIridium’s cash, before and after the new satellitesIridium management’s extended forecast of unlevered free cash flow: $395M in 2027, rising to $529M in 2030, then −$21M in 2031 and $28M to $135M a year to 2035 as the constellation is replaced.−$100M$0$200M$400M$600M’27’28’29’30’31’32’33’34’35Unlevered free cash flow, 2027: $395MUnlevered free cash flow, 2028: $444MUnlevered free cash flow, 2029: $484MUnlevered free cash flow, 2030: $529MUnlevered free cash flow, 2031: −$21MUnlevered free cash flow, 2032: $28MUnlevered free cash flow, 2033: $66MUnlevered free cash flow, 2034: $103MUnlevered free cash flow, 2035: $135M
This version was prepared for Evercore and, the proxy says, was not provided to Rocket Lab. It shows Iridium standalone, buying its satellites and launches from others. Source Proxy statement and prospectus (424B3) [6]. Figures as reported in the forecast.
Show the numbers
Iridium’s cash, before and after the new satellites
202720282029203020312032203320342035
Revenue (reported)$1,039M$1,099M$1,167M$1,242M$1,323M$1,405M$1,466M$1,531M$1,594M
Adjusted OEBITDA (reported)$577M$633M$687M$748M$814M$880M$928M$977M$1,024M
Unlevered free cash flow (reported)$395M$444M$484M$529M−$21M$28M$66M$103M$135M

The price. The business can work and the investment still fail. A buyer at $54.73 is paying for a company several times larger and more profitable than any case I can build. If Rocket Lab does well but not extraordinarily, the shares can fall a long way, as they already have: 64% since May.1 Of the three, this is the one I think most likely.

So the questions for everything below are: when does Neutron earn money, what does Iridium really yield after its satellites, and how much success is already in the price.

What an owner gets today

Owner cash over the past year was −$453M, against a reported net loss of $166M (calculated).2 The difference is stock pay, capital spending ahead of depreciation, and interest on shareholders’ cash. In my base, Rocket Lab alone first produces positive owner cash in 2031, and uses $826M more between 2027 and 2030 (estimate). Iridium’s cash offsets that from mid-2027, which is the honest case for the deal: it pays some of the bills while Neutron is built.

What I can’t judge

Three inputs matter most and can’t be known. What a Neutron flight will cost once the first stage is reused, which decides its margin. How many flights a year the market will buy from someone other than SpaceX. And what Iridium’s spectrum is worth in a world where SpaceX and Amazon are buying their own. For the first two I show ranges below instead of pretending to a precise number. For the third I use Iridium’s forecast with a haircut, and I say so.

How I value it

Fifteen years of owner cash, 2027 to 2041, then growth in perpetuity of 2.5%, 3.0% and 3.5% in the three cases. Rocket Lab’s own business is built from space systems revenue and margin, Electron and HASTE launches at about $9.5M each, Neutron flights at a price and margin, operating costs, tax after loss carryforwards, net investment and working capital. Iridium is its management’s extended forecast, kept at 85%, 95% or 100%, from 1 July 2027, with the cost of its new satellites cut by 0%, 25% or 40% for building and launching them in-house.6 Values are per share on 735.5M shares, which include the 43.7M Iridium shares at the 0.4000 ratio.

The discount rates. I use two. The ten-year Treasury yield was 4.94% at the price date, and Damodaran’s implied equity risk premium 4.20%.3233 On its five-year weekly beta of 2.35 against the S&P 500, Rocket Lab’s cost of equity would be 14.8%; on three years, 2.61, it would be higher still (calculated).341 Evercore used 15% to 18% for Rocket Lab’s cost of equity in its fairness opinion, and 9.0% to 10.0% for Iridium.6 I use 13% for Rocket Lab, below the formula, because a beta measured over a rise from $3.53 to $150.23 overstates how risky the business will be once Neutron flies. I use 9.5% for Iridium, the middle of Evercore’s range. Both are higher than the 10% on most of my pages, and the tables show what lower rates do.

Bear, base and bull

My estimates. Each case’s assumptions are stated in the rows.

Bear, base and bull cases
BearBaseBull
Revenue, 2027, with half a year of Iridium (estimate)$1.5B$1.7B$1.8B
Revenue, 2030 (estimate)$2.6B$3.5B$4.7B
Revenue, 2041 (estimate)$4.0B$7.9B$17.5B
Space systems revenue, 2030 (estimate)$1.2B$1.6B$1.9B
Neutron flights, 2030 and 2041 (estimate)4 and 68 and 2816 and 50
Neutron price a flight, 2027 dollars (estimate)$50M$52.5M$55M
Rocket Lab operating margin, 2035 (estimate)0%16%29%
First year of positive owner cash, Rocket Lab alone (estimate)203820312030
Owner cash, Rocket Lab alone, 2027 to 2030 (estimate)−$1.2B−$826M−$336M
Iridium cash flow kept, and saving on its new satellites (estimate)85%, none95%, 25%100%, 40%
New space services revenue, 2041 (estimate)NoNo$4.5B
Value of Rocket Lab’s own business (estimate)−$1.1B$1.8B$11.1B
Value of Iridium (estimate)$3.5B$5.5B$7.2B
Value per share (estimate)$3$10$25
Without the Iridium deal (estimate)$5$9$23
Return a year at the price (estimate)−9.6%−2.9%5.1%
Both business values are before net debt at closing, which I estimate at about $0.2B. “Without the Iridium deal” keeps the cash and leaves out Iridium and its shares. Source Model in this page’s method [6][2]. Values are my estimates.
Bear
Neutron reaches orbit in 2028 but never flies more than six times a year, at $50M and thin margins. Space systems grows 20% next year and then slows to single digits as the SDA work runs off. Rocket Lab alone does not make an owner profit until 2038. Iridium closes, its forecast proves 15% too high, and Rocket Lab saves nothing on its new satellites.
Base
Neutron flies in late 2027, three times in 2028, five in 2029, and reaches 28 a year by 2041 at a 35% gross margin. Space systems compounds from 28% next year down to 4%, to $3.7B. Opex grows 5% a year to 2031 and 4% after. Owner cash turns positive in 2031. Iridium delivers 95% of its forecast and Rocket Lab builds and launches its next constellation for 25% less.
Bull
Neutron works early and reuse works. It flies 16 times in 2030 and 50 a year from 2039, under a third of SpaceX’s 165 launches in 2025.10 Space systems grows above 20% for four years. On top, Rocket Lab builds new services on Iridium’s spectrum that reach $4.5B of revenue by 2041 at a 30% margin. Iridium hits its forecast and the new satellites cost 40% less.

The base path

My base case, selected years, US dollars.

The base path
202720282029203020312033203520382041
Revenue, with Iridium (estimate)$1.7B$2.6B$3.0B$3.5B$4.0B$4.9B$5.7B$6.9B$7.9B
Neutron flights (estimate)03581116202528
Rocket Lab operating income (estimate)−$216M−$158M−$58M$70M$196M$454M$657M$918M$1.1B
Rocket Lab owner cash (estimate)−$341M−$285M−$160M−$39M$73M$305M$406M$560M$676M
Iridium cash flow (estimate)$188M$422M$460M$503M$99M$181M$246M$588M$642M
Iridium’s cash falls in 2031 to 2035 as its constellation is replaced, then recovers. Source Model; 424B3 [6]. Estimates.

Revenue in my three cases

US$ millions a year: bear to bull, with the base marked

  • Bear to bull, 2041 $4.0B to $17.5B
  • Base, 2041 $7.9B
Revenue in my three casesRevenue including Iridium from mid-2027. Base reaches $3.5B in 2030 and $7.9B in 2041; bear $4.0B; bull $17.5B.$0$6B$12B$18B’26’31’36’41Revenue in my three casesRevenue including Iridium from mid-2027. Base reaches $3.5B in 2030 and $7.9B in 2041; bear $4.0B; bull $17.5B.$0$6B$12B$18B’26’31’36’41Revenue in my three casesRevenue including Iridium from mid-2027. Base reaches $3.5B in 2030 and $7.9B in 2041; bear $4.0B; bull $17.5B.$0$6B$12B$18B’26’31’36’41
2026 is my estimate from the first half and the third-quarter guide. Iridium is in from 1 July 2027. Everything after 2026 is my estimate. Source 10-Q Q2 2026; Q2 2026 release; 424B3 [2][9][6]. Assumptions and values are my estimates.
Show the numbers
Revenue in my three cases
2026202720282029203020312032203320342035203620372038203920402041
Bear (estimate)$970M$1,534M$2,183M$2,391M$2,643M$2,845M$3,041M$3,174M$3,301M$3,430M$3,536M$3,629M$3,726M$3,827M$3,931M$4,038M
Base (estimate)$970M$1,675M$2,620M$3,031M$3,507M$3,974M$4,459M$4,877M$5,307M$5,738M$6,153M$6,563M$6,898M$7,217M$7,549M$7,859M
Bull (estimate)$970M$1,825M$2,960M$3,684M$4,706M$5,862M$7,137M$8,316M$9,545M$10,781M$12,014M$13,235M$14,395M$15,557M$16,551M$17,521M

What the price says

Turn it round. At $54.73, after the deal, the market values the company at about $40B including its estimated net debt (calculated). Take off my base value of Iridium, $5.5B, and $34.9B is left for Rocket Lab’s own business. My base puts that at $1.8B (estimate).

What the price needs

Reverse discounted cash flow at my rates.

Reverse discounted cash flow
Diluted market value after the deal (calculated)$40.3B: $54.73 on 735.5M shares
Net debt at closing, estimated (estimate)$0.2B
Enterprise value at the price (calculated)$40.4B
Less my base value of Iridium (estimate)$5.5B
Left for Rocket Lab’s own business (calculated)$34.9B, against my base of $1.8B
My base owner cash, 2027 to 2035, discounted at 13% (estimate)−$109M
Steady owner cash the price needs from 2036 (calculated)About $11B a year, growing 3%
My base, 2036 (estimate)$438M
Or: growth and Neutron flights scaled up together (calculated)2.7 times my base: 76 Neutron flights a year and $47.3B of revenue by 2041
Source Nasdaq; model [1]. Calculated and estimated.

Steady owner cash of about $11B a year from 2036 is a third of all of SpaceX’s revenue over the past year.8 Put another way, the price needs my whole base case to grow 2.7 times as fast, all at once, giving 76 Neutron flights a year and revenue near $47.3B by 2041 (calculated). Rocket Lab would need to be, in fifteen years, larger than SpaceX is today.

How much the answers move

Base value by discount rate

Value per share, my base case.

Base value by discount rate
Rocket Lab rateIridium 8.5%Iridium 9.5%, my rateIridium 10.5%
10.0%, the rate on most of my pages (estimate)$13.5$12.0$10.8
11.0% (estimate)$12.5$11.0$9.9
12.0% (estimate)$11.8$10.3$9.1
13.0%, my rate (estimate)$11.2$9.7$8.6
14.8%, five-year beta (estimate)$10.5$8.9$7.8
16.0% (estimate)$10.1$8.6$7.5
Even at 10% for Rocket Lab and 8.5% for Iridium, the base is far below the price. Source Model [32][33][6]. Estimates.

Base value by Neutron

Value per share if Neutron reaches a given number of flights a year by 2041, on my base ramp, at three gross margins.

Base value by Neutron flights and margin
Neutron flights a year by 204125% gross margin35%, my base45%
0, never flies (estimate)$7.2$7.2$7.2
14 (estimate)$8.0$8.4$8.9
28, my base (estimate)$8.9$9.7$10.5
42 (estimate)$9.7$10.9$12.2
56 (estimate)$10.5$12.2$13.9
At my base rates. The grid shows how little of today’s price Neutron alone can explain at any margin I find believable. Source Model; Q2 2026 call [14]. Estimates.

The surprise in these tables is how little they move. The reason is that most of the value in every case is far away, and at 13% a dollar in 2041 is worth about 16 cents today (calculated). Doubling Neutron’s long-run flights adds about $2.50 a share. The price is not a bet on Neutron flying. It is a bet on Rocket Lab becoming something much larger than a launcher.

Am I too harsh?

I tested it, because a base 80% below the price invites the question. Two inputs lean cautious. The first is the discount rate. I use 13% for Rocket Lab where most of my pages use 10%. At 10% for Rocket Lab and 8.5% for Iridium, my bull is worth $39, not $25 (estimate). The second is near-term growth. My 2027 revenue before Iridium, $1.18B, is only 15% above the third-quarter guide of $250M to $265M a quarter, annualised at $1.03B.9 Management has not guided beyond the quarter, so that is my call. Then I put every cautious input to its kinder end at once: space systems growth of 40% next year and 30% after, a space systems margin near 40%, 46 Neutron flights a year at a 42% margin, and slower cost growth. That gives about $15 at my rates and about $21 at 10% and 8.5% (estimate). Neutron flights and margin I do not think I have set low: my bull already has 50 flights a year. So the model is somewhat cautious, and I say so, but not by anything near the gap. Even my bull at 9% and 8%, with growth of 4% after 2041, is about $50, still below $54.73.

The margin of safety

I set it from the bear case: the price at which my $3 bear value is three quarters of what is paid, so $4. At $4 the market value would be about $2.9B, below my base value of Iridium on its own (estimate). That tells you how far apart the price and my range are. The stock last closed that low in May 2024.1

What it is worth, against the price

Value per share, my estimates, against the close in Q4 2026

  • Bear to bull $3 to $25
  • Base $10
  • Price $54.73
  • Margin of safety below $4
What it is worth, against the priceValue per share: bear $3, base $10, bull $25. Price in Q4 2026: $54.73, 465% above the base value and 121% above the bull. Margin-of-safety price $4.BEAR$3BASE$10BULL$25Price $54.73What it is worth, against the priceValue per share: bear $3, base $10, bull $25. Price in Q4 2026: $54.73, 465% above the base value and 121% above the bull. Margin-of-safety price $4.BEAR$3BASE$10BULL$25Price $54.73What it is worth, against the priceValue per share: bear $3, base $10, bull $25. Price in Q4 2026: $54.73, 465% above the base value and 121% above the bull. Margin-of-safety price $4.Margin-of-safety zone: below $4$0$20$40$60Bear to bull: $3 to $25Bear case: $3 per shareBEAR$3Base case: $10 per shareBASE$10Bull case: $25 per shareBULL$25Price in Q4 2026: $54.73Price $54.73Close, Q4 2026
The weighted value, 25% bear, 50% base and 25% bull, is $12. Source Nasdaq historical; model in this page’s method [1]. Values are my estimates.

The price against the range

The price is 465% above my base and 121% above my bull. At $54.73 my base cash flows return −2.9% a year, and even the bull returns 5.1% (estimate). Weighting the cases 25%, 50% and 25% gives $12 (estimate). The market may be right and I may be wrong: the bull case needs the things I am least able to judge, and I may be too low on all of them at once. I would rather show that plainly than move the numbers until they meet the price.

Against the alternative

Every dollar here could go somewhere else. A ten-year Treasury pays 4.94%.32 My base return here is −2.9%. The nearer comparison is on this site. My SpaceX page finds its price 182% above my base value, and SpaceX already has the scale, the launch record and Starlink that Rocket Lab is hoping to build. On my numbers Rocket Lab’s price is further above its value than SpaceX’s, with less of the business already in hand. The odd one is Iridium itself. At $44.91, an Iridium share is $27 of cash after closing plus 0.4 of a Rocket Lab share, worth $48.89 together at today’s prices, 8.9% more than it costs (calculated).284 That gap is what the market charges for the wait and the risk the deal fails. It also means Iridium’s holders are now, for most of their money, holders of cash.

Quality and price, separately

How good is the business? Better than most small space companies: it launches reliably, it wins government work, its parts sell to rivals, and its founder is still in charge with a large stake. Not yet good in the sense of earning more than it costs, and it has never had a profitable year. How good is the price? On every case I can build, poor. This looks like a good company at a price that has already paid for a great one.

How the odds multiply

The case for the price needs several things to go right together. My guesses at each are in the table. They are not independent, since a Neutron that flies early also helps margins and cash, so the true chance of all five is somewhat higher than the product. But each step looks likely on its own, and the product is about 12%.

How the odds multiply

Each step is my estimate; the product assumes they are independent.

How the odds multiply
StepMy odds
Neutron reaches orbit by the end of 2027 (estimate)70%
It flies ten or more times a year by 2031 (estimate)55%
Reuse brings launch margins near 35% (estimate)60%
Iridium closes and its cash flow holds (estimate)85%
Space systems keeps growing above 15% a year to 2030 (estimate)60%
All five together (calculated)12%
Even this set of steps only reaches something like my bull case, not the price. Source My estimates.

Where this could be in 5 and 10 years

Value per share at year 5 and year 10

In the dollars of that year, per today’s 735.5M shares.

Value per share at year 5 and year 10
CaseValue per share, October 2031Value per share, October 2036Owner cash per share, to October 2036Return a year, $54.73 to October 2036
Bear (estimate)$4.8$7.8−$0.2−17.6%
Base (estimate)$14.6$19.4$5.5−8.0%
Bull (estimate)$39.8$55.0$15.0+2.7%
Value at each date is the present value then of the owner cash after it, at 13% for Rocket Lab and 9.5% for Iridium, plus net debt of about $0.2B carried at 13%. Owner cash covers both, and a minus is cash put in. The return sits below the return row above, which values later years at the return itself. Source Model in this page’s method. Values are my estimates.

For my base to be right at five years, Neutron has to fly 11 times in 2031 and Rocket Lab on its own has to make $73M of owner cash (estimate). Iridium has to deliver 95% of its forecast through its satellite replacement. It is right at ten years if 2036 revenue is $6.2B and Rocket Lab’s owner cash is $438M on 22 flights (estimate). The value rises from $9.7 today because the cash comes nearer, not because I add anything. About 60% of it is Iridium at both dates (calculated).

The cases differ on Neutron, margin and capital. In the bear Neutron never flies more than six times a year, the operating margin is 0% in 2035, and Rocket Lab alone uses cash until 2038. Iridium is nearly all of the $7.8. In the bull Neutron flies 22 times in 2031 and 43 in 2036, and the margin reaches 29% in 2035. At 10% for Rocket Lab my base today is $12.0.

The most likely way my base is wrong is Neutron. If reuse is slow, flights and margin come in lower and the five-year value moves toward the bear’s $4.8. Today’s price, $54.73, is about what my bull is worth in October 2036.

These are estimates of value, not forecasts of the share price. The market price can sit above or below value for years.

The case for the price

What most people miss

Three things cut in Rocket Lab’s favour and rarely come up. First, the collar now works for Rocket Lab. Below $67.50 the exchange ratio is fixed at 0.4000, so at $54.73 it pays $48.89 an Iridium share, not $54, about $0.54B less, and each $1 fall in its own shares cuts the price by another $42M (calculated).46 Second, it sold stock when it was dear: 8.15M shares at about $131 in the second quarter, near the top.2 The deal and Neutron are paid for without going back to the market (estimate). Third, HASTE flights under the new Space Force contract are worth $14.8M to $22.2M each, well above an ordinary Electron launch.214

The bull case

In plain words: launch is short of capacity, SpaceX is moving its effort to Starship, and governments want a second supplier that can build and fly a whole mission. Rocket Lab says it is the only other company that does both, and with Iridium it adds spectrum and recurring revenue. Beck’s version is that the space companies that last will build their own satellites and fly them on their own rockets.11

Holders say it with money more than words, though not in a straight line. ARK held 1,631,207 shares at 30 June, down from 2,243,656 at 31 March.35 Since then its daily trade notices show purchases of about 2.09M shares across ARKK, ARKQ and ARKX between 28 July and 15 October, including 168,633 shares on 15 October, the day after the Neutron delay, which the Motley Fool put at about $9.3M.4136 ARK’s own site refused my request, so I read those notices through arkfunds.io, a third-party copy; its figures for 22 September and 1 October match the Fool’s. At 31 July two of its funds, the robotics and the space ETFs, held 960,577 and 554,056 shares.37 I could not find a published ARK model or price target for Rocket Lab, so I cite none. On the sell side, Citizens cut its target to $90 from $130 and KeyBanc to $100 from $135, and KeyBanc cited one fewer paid Neutron launch in 2027. Both are as reported; I could not open either note.3839 Not every holder agrees. Baillie Gifford cut its holding from 18.4M shares to 10.4M in the second quarter.35

Against reality

Today, space systems is growing fast, $189.5M in the second quarter against $97.9M a year earlier, partly from acquisitions.2 Launch revenue fell slightly. Neutron has not flown. If Neutron reaches orbit in 2027, flies 20 times a year by 2035, and space systems keeps growing above 15% to 2031, my base is possible: $10 a share. The price needs that whole path 2.7 times larger (calculated). That is the distance between today’s numbers and the case.

What a 10x would take. Ten times $54.73 is $547, about $403B of market value. At 25 times owner cash, that needs about $16B a year. At a 20% owner margin, far above anything Rocket Lab has earned, that is about $81B of revenue, 2.5 times SpaceX’s today.8 By 2036 it means revenue growing about 56% a year for ten years from about $1B (calculated). From a starting value near $40B it has been done. NVIDIA’s shares rose 115 times and Tesla’s 30 times in the ten years to Q4 2026, from market values of about $38B and $30B (calculated).40 Those are the decade’s famous exceptions. For Rocket Lab from here, tenfold is close to impossible, and I would not build a case on it.

What they have to hit

Six numbers on a fixed schedule. Thresholds come from my base case and agree with the signposts below.

What they have to hit
IndicatorTodayWhat the case needsWhere to track itNext check
Neutron flightsNo flights yet; first launch now 2027, date to be set after tests in Q1 2027518Orbit by the end of 2027, three flights in 2028 and five in 2029 (estimate)8-K press releases; quarterly release, Neutron sectionQ3 2026 release, expected 9 November 2026 per Nasdaq’s calendar
Space systems revenue$189.5M in Q2 2026, up 94% on the year2About $954M in 2027, up 28%, and above 15% a year to 2031 (estimate)10-Q, segments note, Space Systems revenue lineQ3 2026 10-Q, expected November 2026
Backlog$2,356M at 30 June; 45% within 12 months2Rising each year as SDA work is delivered: new awards at least as large as revenue (estimate)10-Q, Note 2, Backlog paragraphQ3 2026 10-Q, expected November 2026
Cash burnNon-GAAP free cash flow −$110.1M in Q2; owner cash −$453M over twelve months142Owner cash use below $285M in 2028 and positive in 2031 (estimate)Quarterly release, cash flow statement; CFO’s free cash flow figure on the callQ3 2026 release, expected 9 November 2026
Iridium cash earningsOEBITDA $135.6M in Q3 2026; FCC consent pending21Close by mid-2027; OEBITDA near $550M in 2027, 95% of its forecast (estimate)Iridium quarterly release, OEBITDA line; Rocket Lab 8-K at closingIridium Q4 2026 release, expected February 2027
Share count692M fully diluted before Iridium; Q3 guide 641M basic weighted29No more than about 760M by the end of 2028, including the Iridium shares (estimate)10-Q cover page and earnings-per-share noteQ3 2026 10-Q, expected November 2026
Source 10-Q Q2 2026; Q2 2026 release and call; Iridium Q3 2026 release; Neutron 8-K [2][9][14][21][5]. Thresholds are my estimates.

Where I come down

Beck giving up his pay moved me, and so did the timing of the share sales: this is a management that knows what its stock is worth to others. The targets did not, because none I could see reconcile with cash. A Neutron that reaches orbit in 2027, lands its first stage and books a second year of customer flights would raise my values most, though on my numbers not to the price.

Risks, and what would change my view

The three ways this goes badly wrong are at the start of Valuation. These are the rest.

  • One customer. A government customer was 42% of first-half revenue.2 A budget change, a cancelled tranche or a lost competition would show up quickly.
  • The deal can still break. FCC consent and some foreign approvals are outstanding, and the end date is 28 June 2027, extendable to 28 December 2027.4 SpaceX has asked the FCC to weigh Iridium’s conduct toward rivals, as reported.25 If the deal fails, Rocket Lab keeps the cash it raised, and my base without Iridium is $9.
  • Integration. Iridium is larger by revenue than Rocket Lab and runs a safety-of-life network. Rocket Lab has never run one.11 Iridium’s term loan rate rises after closing, to SOFR plus 2.50% to 3.00%.23
  • Launch failure. Electron has failed before, and a failure grounds a rocket while the cause is found. A Neutron failure on an early flight would cost a year.3
  • Contracts. MDA may claim liquidated damages on 17 late satellite buses, an amount the company cannot yet estimate.2 Three launch customers owe Rocket Lab money under loans made to win their business.2
  • Dilution. If Neutron slips again, the losses run longer, and the money comes from new shares.2
  • Key person. The 10-Q lists retaining Beck among its risks.2 The company is built around him.

What would change my view

Signals that move my values, in either direction.

Signposts
SignalTodayRaises my valueLowers my value
Neutron’s first flightNot flown; 20275Orbit and a recovered first stage in 2027No flight by the end of 2027, or a failure
Neutron cadenceNo flights yetFive or more flights in 2029 with customers paying $50M or moreFewer than three flights in 2029
Space systems growthUp 94% in Q2, with acquisitions2Above 25% a year organically through 2028Below 15% in 2027 as SDA work runs off
Iridium’s cashOEBITDA $135.6M in Q321Above forecast, and a cheaper next constellation shown in a planBelow 90% of forecast, or replacement brought forward
Owner cash−$453M over twelve months2Positive before 2030Use above $400M a year after Neutron flies
Share count735M after the deal (estimate)Flat once the deal closesAnother large equity sale before Neutron flies
Source 10-Q Q2 2026; Iridium Q3 2026 release; Neutron 8-K [2][21][5]. Thresholds are my judgement.

Sources

  1. 1RKLB daily closes, Nasdaq.com historical API, 25 August 2021 to 30 October 2026 (opens in a new tab)PriceNasdaq · 30 Oct 2026 · Close/Last on 10/30/2026 = $54.73, Nasdaq Global Select; cross-checked against the Yahoo Finance chart feed, also $54.73; 52-week range $37.57 to $151.00; next earnings date shown as 9 Nov 2026 · Accessed 30 Oct 2026↩︎
  2. 2Rocket Lab Form 10-Q, quarter ended 30 June 2026 (opens in a new tab)FilingSEC EDGAR · 10 Aug 2026 · Cover share count (598,350,482 at 5 Aug 2026); backlog note; customer concentration; MDA contract; customer loans; ATM and collared forwards; anti-dilutive securities; segments; Neutron update; liquidity · Accessed 30 Oct 2026↩︎
  3. 3Rocket Lab Form 10-K, year ended 31 December 2025 (opens in a new tab)FilingSEC EDGAR · 26 Feb 2026 · Items 1, 1A, 2, 7; segment note; income tax note (federal NOLs $840.9M); employees; SDA Tranche 3 award · Accessed 30 Oct 2026↩︎
  4. 4Rocket Lab 8-K: merger agreement with Iridium Communications (opens in a new tab)FilingSEC EDGAR · 29 Jun 2026 · Item 1.01: $27.00 cash plus 0.2400 to 0.4000 shares; collar at $67.50 and $112.50; $223.62M termination fee; end date 28 June 2027, extendable to 28 December 2027; $3.6B bridge commitment · Accessed 30 Oct 2026↩︎
  5. 5Rocket Lab 8-K and press release: Neutron development update (opens in a new tab)FilingSEC EDGAR · 14 Oct 2026 · Item 8.01: first launch now anticipated in 2027; Ex. 99.1 press release · Accessed 30 Oct 2026↩︎
  6. 6Rocket Lab prospectus and Iridium proxy statement for the merger (Form 424B3) (opens in a new tab)FilingSEC EDGAR · 26 Aug 2026 · Background of the Mergers; Iridium unaudited prospective financial information (initial and extended forecasts); Evercore analyses; 105,981,552 Iridium shares at the record date; ownership after the merger; risk factors · Accessed 30 Oct 2026↩︎
  7. 7Iridium Form 10-Q, quarter ended 30 September 2026 (opens in a new tab)FilingSEC EDGAR · 20 Oct 2026 · Debt note: term loan and Aireon loans $2,109.5M; Aireon price $366.7M, half deferred; repurchase programme ended 28 June 2026; nine-month cash flow · Accessed 30 Oct 2026↩︎
  8. 8Space Exploration Technologies Corp. Form 10-Q, quarter ended 30 September 2026 (opens in a new tab)FilingSEC EDGAR · 22 Oct 2026 · Note 3 revenue and Note 18 segments: nine months to September 2026 revenue $27,083M (2025: $13,714M), Space $3,348M ($3,277M); operating cash flow $13,097M ($4,120M); purchases of property $48,069M ($13,846M) and capitalized interest $20M ($96M). With the 424B4 FY2025 figures: twelve-month revenue $32.0B, Space $4.2B, operating cash flow less capital spending about −$39.3B · Accessed 30 Oct 2026↩︎
  9. 9Rocket Lab press release, second quarter 2026 results (Ex. 99.1 to 8-K) (opens in a new tab)FilingSEC EDGAR · 10 Aug 2026 · Results, backlog, contract awards, Q3 2026 guidance, non-GAAP reconciliation · Accessed 30 Oct 2026↩︎
  10. 10BryceTech 2025 Year in Review, as reported by Via Satellite (opens in a new tab)Industry dataVia Satellite (BryceTech) · 10 Apr 2026 · 325 orbital launches in 2025: SpaceX 165, CASC 68, Rocket Lab 18, Roscosmos 17 · Accessed 30 Oct 2026↩︎
  11. 11Excerpts from Rocket Lab Q2 2026 call on Iridium (Rule 425 filing) (opens in a new tab)FilingSEC EDGAR · 11 Aug 2026 · Beck and Spice on Iridium: 66 satellites, 2.5M subscribers, constellation good into 2035, L-band, mid-2027 close · Accessed 30 Oct 2026↩︎
  12. 12Rocket Lab 8-K: amendment to Sir Peter Beck’s employment agreement (opens in a new tab)FilingSEC EDGAR · 30 Mar 2026 · Item 5.02: salary to $1.00 or the New Zealand statutory minimum; no bonus; 392,155 unvested RSUs forfeited · Accessed 30 Oct 2026↩︎
  13. 13Peter Beck Form 4, sales of 6 to 8 July 2026 by the Equatorial Trust (opens in a new tab)FilingSEC EDGAR · 8 Jul 2026 · 3,275,779 shares sold at about $82 to $102 under a Rule 10b5-1 plan adopted 27 March 2026; 1,724,221 shares left in the trust; 491,930 held directly. Also Form 4 of December 2025 (2,500,000 shares, about $141M), accession 0002001011-25-000126 · Accessed 30 Oct 2026↩︎
  14. 14Rocket Lab Q2 2026 earnings call transcript (opens in a new tab)TranscriptThe Motley Fool · 17 Aug 2026 · Third-party transcript of the 10 August call: Neutron price $50M to $55M, 1-3-5 ramp, cash flow timing, SDA margins, component margins, headcount 3,217 · Accessed 30 Oct 2026↩︎
  15. 15Rocket Lab 8-K: closing of the Mynaric acquisition (opens in a new tab)FilingSEC EDGAR · 14 Apr 2026 · $155.3M paid, nearly all in 2,277,002 shares · Accessed 30 Oct 2026↩︎
  16. 16Rocket Lab Form 10-K, year ended 31 December 2021 (opens in a new tab)FilingSEC EDGAR · 24 Mar 2022 · FY2020 and FY2021 statements · Accessed 30 Oct 2026↩︎
  17. 17Rocket Lab company facts (XBRL), SEC EDGAR (opens in a new tab)DataSEC EDGAR · 30 Oct 2026 · Annual revenue, gross profit, R&D, SG&A, operating loss, net loss, cash flow, capital spending, stock pay, D&A and remaining performance obligations, FY2020 to Q2 2026 · Accessed 30 Oct 2026↩︎
  18. 18Rocket Lab pushes back first Neutron launch to 2027 (opens in a new tab)PressThe Register · 15 Oct 2026 · Beck quoted on the propellant dome; tests to run into Q1 2027; earlier targets of 2024, 2025 and 2026 · Accessed 30 Oct 2026↩︎
  19. 19Rocket Lab 8-K: Neutron Stage 1 tank qualification test (opens in a new tab)FilingSEC EDGAR · 21 Jan 2026 · Item 8.01: rupture during a hydrostatic pressure trial · Accessed 30 Oct 2026↩︎
  20. 20Rocket Lab’s Neutron debut now delayed to 2027 (opens in a new tab)PressVia Satellite · 15 Oct 2026 · January tank failure traced to contractor hand layup; production moved to an in-house automated fibre placement machine; voids found in the forward dome; no new date · Accessed 30 Oct 2026↩︎
  21. 21Iridium press release, third quarter 2026 results (Ex. 99.1 to 8-K) (opens in a new tab)FilingSEC EDGAR · 20 Oct 2026 · Revenue $245.7M; OEBITDA $135.6M; 2,696,000 subscribers; stockholder approval 24 September with 99.6% of votes cast; EMSS extended to March 2027; Aireon closed 2 July; net debt $2.1B; cash $97.9M · Accessed 30 Oct 2026↩︎
  22. 22Rocket Lab 8-K: equity distribution agreement of up to $1,944,369,826 (opens in a new tab)FilingSEC EDGAR · 13 Aug 2026 · Item 8.01; Ex. 99.2: HSR waiting period expired 12 August 2026; FCC applications filed 10 August 2026 · Accessed 30 Oct 2026↩︎
  23. 23Rocket Lab 8-K and press release: Iridium acquisition fully funded (opens in a new tab)FilingSEC EDGAR · 15 Sep 2026 · About 29.3M shares sold for about $1.944B gross under the ATM; bridge terminated; Iridium $1.775B term loan stays, with SOFR plus 2.50% to 3.00% after closing; mid-2027 close · Accessed 30 Oct 2026↩︎
  24. 24Iridium company facts (XBRL), SEC EDGAR (opens in a new tab)DataSEC EDGAR · 30 Oct 2026 · Revenue, operating cash flow, capital spending and buybacks, 2020 to 2025 · Accessed 30 Oct 2026↩︎
  25. 25Rocket Lab falls 6% as SpaceX flags Iridium deal to the FCC (opens in a new tab)Press24/7 Wall St. · 28 Aug 2026 · SpaceX filing as reported: does not oppose the transaction; asks the FCC to weigh Iridium’s conduct; more than 50 petitions in eight months; the filing itself not seen · Accessed 30 Oct 2026↩︎
  26. 26Space Exploration Technologies Corp. final prospectus (Form 424B4) (opens in a new tab)FilingSEC EDGAR · 12 Jun 2026 · FY2025: revenue $18,674M, Space $4,086M; operating cash flow $6,785M; purchases of property $20,737M and capitalized interest $169M · Accessed 30 Oct 2026↩︎
  27. 27SPCX quote and summary, Nasdaq, close on 30 October 2026 (opens in a new tab)PriceNasdaq · 30 Oct 2026 · Market cap $1,829,640,902,876 at the close · Accessed 30 Oct 2026↩︎
  28. 28IRDM daily closes, Nasdaq.com historical API (opens in a new tab)PriceNasdaq · 30 Oct 2026 · Close/Last on 10/30/2026 = $44.91 · Accessed 30 Oct 2026↩︎
  29. 29Rocket Lab definitive proxy statement, 2026 annual meeting (opens in a new tab)FilingSEC EDGAR · 6 Apr 2026 · Compensation discussion; Summary Compensation Table; pay versus performance; security ownership at 30 March 2026; Series A preferred exchange; pledged shares · Accessed 30 Oct 2026↩︎
  30. 30Adam Spice Form 4, option exercise and sale of 1 October 2026 (opens in a new tab)FilingSEC EDGAR · 2 Oct 2026 · Sales at $70.28 to $71.79; my total of his reported sales from 30 October 2025 to 30 October 2026 is 1,843,771 shares for about $138M, from all his Form 4s in that period · Accessed 30 Oct 2026↩︎
  31. 31Unaudited pro forma combined financial information of Rocket Lab and Iridium (Ex. 99.3 to 8-K) (opens in a new tab)FilingSEC EDGAR · 13 Aug 2026 · Pro forma balance sheet at 30 June 2026; intangibles $4.25B and goodwill $2.10B added; purchase consideration estimate · Accessed 30 Oct 2026↩︎
  32. 32US Treasury daily par yield curve rates, 2026 (opens in a new tab)DataU.S. Department of the Treasury · 30 Oct 2026 · 10-year 4.94% on 10/30/2026 · Accessed 30 Oct 2026↩︎
  33. 33Damodaran implied equity risk premium, 1 October 2026 (opens in a new tab)ResearchAswath Damodaran, NYU Stern · 1 Oct 2026 · Implied ERP 4.20% (trailing 12 month, with adjusted payout); same basis as the other Investing pages · Accessed 30 Oct 2026↩︎
  34. 34SPY daily closes, Nasdaq.com historical API, 31 October 2016 to 30 October 2026 (opens in a new tab)PriceNasdaq · 30 Oct 2026 · Used with RKLB closes for weekly betas: 2.35 over five years, 2.61 over three, 2.77 over two · Accessed 30 Oct 2026↩︎
  35. 35ARK Investment Management Form 13F, quarter ended 30 June 2026 (opens in a new tab)FilingSEC EDGAR · 14 Aug 2026 · Rocket Lab 1,631,207 shares, $165.8M; 2,243,656 at 31 March. Baillie Gifford 13F (accession 0001088875-26-000057): 10,384,512 shares at 30 June, from 18,428,043 at 31 March. No Rocket Lab shares in the 30 June 13Fs of Altimeter, Atreides, Coatue, Duquesne, Appaloosa, Situational Awareness, Tiger Global, Whale Rock, Viking or Lone Pine, nor Pershing Square at 31 March · Accessed 30 Oct 2026↩︎
  36. 36Cathie Wood trimmed Ark’s Alphabet stake … while Ark piled into Rocket Lab (opens in a new tab)PressThe Motley Fool · 21 Oct 2026 · ARK bought about $25.1M of Rocket Lab on 22 September and about $9.3M on 15 October, from ARK’s trade notices as reported; the notices themselves not seen; no statement by Wood or ARK quoted · Accessed 30 Oct 2026↩︎
  37. 37ARK Autonomous Technology & Robotics ETF Form N-PORT, 31 July 2026, and the other ARK ETF Trust filings of that date (opens in a new tab)FilingSEC EDGAR · 22 Sep 2026 · Rocket Lab in ARK Autonomous Technology & Robotics ETF, 960,577 shares, 3.36% of net assets, and ARK Space & Defense Innovation ETF, 554,056 shares, 4.74%; none in the other ten · Accessed 30 Oct 2026↩︎
  38. 38Citizens cuts Rocket Lab stock price target on Neutron delay to 2027 (opens in a new tab)PressInvesting.com · 16 Oct 2026 · Citizens: target $90 from $130, rating unchanged; Beck quoted on safety margins; the note itself not seen · Accessed 30 Oct 2026↩︎
  39. 39KeyBanc cuts Rocket Lab stock price target on Neutron delay (opens in a new tab)PressInvesting.com · 15 Oct 2026 · KeyBanc: target $100 from $135, rating unchanged; one fewer revenue launch in 2027; the note itself not seen · Accessed 30 Oct 2026↩︎
  40. 40NVDA and TSLA daily closes, Nasdaq.com historical API, 31 October 2016 to 30 October 2026 (opens in a new tab)PriceNasdaq · 30 Oct 2026 · Split-adjusted: NVDA $1.779 to $204.64; TSLA $13.182 to $399.81 (TSLA from the same API, symbol TSLA). Shares from the cover pages of NVIDIA’s 10-Q (539,495,365 at 18 Nov 2016) and Tesla’s 10-Q (149,891,190 at 25 Oct 2016) · Accessed 30 Oct 2026↩︎
  41. 41ARK daily trades for ARKK, ARKQ and ARKX, 12 June to 15 October 2026, arkfunds.io (opens in a new tab)Dataarkfunds.io, a third-party copy of ARK’s trade notices · Rocket Lab buys of 28 July to 15 October total 2,094,411 shares across the three funds; 359,612 on 22 September and 233,482 on 1 October; 168,633 on 15 October; ARK’s own site not opened · Accessed 31 Oct 2026↩︎
  42. 42FCC ECFS filing index, GN Docket 26-257, applications of Iridium and Rocket Lab for consent to transfer control (opens in a new tab)FilingFederal Communications Commission · Index lists a letter from Space Exploration Technologies Corp. received 16 October 2026 (dated 15 October); the document itself returned an access error and was not read · Accessed 31 Oct 2026↩︎

How the figures are labelled

(reported)Reported: taken from a filing or a price feed, as printed.

(calculated)Calculated: arithmetic on reported figures, such as a margin or a growth rate.

(estimate)Estimate: my judgement, such as a case value or a growth assumption.

The price

Close in Q4 2026: $54.73, from Nasdaq [1]. Retrieved in Q4 2026. The fiscal year is the calendar year. Third-quarter results come after the price date, so the latest twelve months are the four quarters to 30 June 2026. Per-share values use 735.5M shares: 598.35M common at 5 August 2026, about 29.3M sold in August and September, 40.95M Series A preferred, 7.45M collared forward shares, 13.10M options and RSUs, 2.61M shares for convertible notes, and 43.7M for Iridium at the 0.4000 ratio, including assumed awards.

The valuation

Fifteen-year discounted cash flow on owner cash, after stock pay, 2027 to 2041, then growth in perpetuity of 2.5%, 3.0% and 3.5% in the bear, base and bull cases. Rocket Lab’s own business is discounted at 13% and Iridium’s at 9.5%, each year’s cash at year end, from the price date. Rocket Lab is built from space systems revenue and gross margin, Electron and HASTE launches, Neutron flights, price and margin, operating costs, a 21% tax after $1.05B of loss carryforwards used up to 80% a year, net investment and working capital at 12% of added revenue. Iridium is its management’s extended forecast from the proxy, from 1 July 2027, kept at 85%, 95% or 100%, with the extra spending on its new satellites cut by 0%, 25% or 40%, and after 2035 a steady $200M a year for replacing them. Net debt at closing is my estimate: 30 June cash and securities, the September share sale less 1% costs, less $240M of second-half use, plus the $474M collared forward floor, less $3.05B paid at closing and Iridium’s $1.775B term loan, plus Iridium’s cash. The yearly returns are the rate that equates the price, with that net debt, to fifteen years of each case’s cash plus the year-fifteen values taken at my rates. The odds in Section VI are my guesses and are not used in the values, except that the weighted value of $12 uses 25%, 50% and 25%.

The margin-of-safety price is $4, set from my bear case. No rating: the page states a range and the price, and leaves the decision to the reader.

Research, not investment advice. Figures as of .

Legal information and disclosures

These are my own views as of the update shown on this page. They can change without notice, and I have no duty to update them. Past performance does not indicate future results, and any investment can lose money.

This is for education only. It is not investment, legal, tax or accounting advice, and it is not an offer to sell or a solicitation to buy any security in any jurisdiction. It does not consider your goals or circumstances.

Figures from company filings and other third parties are believed to be reliable, but I have not independently verified them and cannot guarantee them. Bear, base and bull values, and anything marked as an estimate, are my own and rest on assumptions that may prove wrong.

Please do not copy or republish this material without my written consent.