Rocket Lab USA(RKLB) - 2025 Q1 - Quarterly Report

Revenue Growth - Revenue for the three months ended March 31, 2025, was $122.6 million, a 32$92.8 million in the same period of 2024, driven by space systems revenue growth of $26.9 million and an increase in launch revenue of$2.9 million [117]. - Revenues for the three months ended March 31, 2025, were $122.6 million, a 32$92.8 million in the same period of 2024 [131]. - Space systems revenue increased by $26.9 million, or 45$87.0 million, driven by spacecraft manufacturing growth [131]. Launch Activities - The company launched five Electron vehicles in the three months ended March 31, 2025, compared to four launches in the same period of 2024, contributing to the increase in launch revenue [117]. - The company built approximately 14 Electron launch vehicles in 2024 and launched 16 vehicles in the same year, indicating a ramp-up in production and launch cadence [116]. - The average revenue value per launch decreased from $8.2 million in the three months ended March 31, 2024, to$7.1 million in the same period of 2025, while the cost per launch decreased from $6.1 million to$5.7 million [119]. Financial Performance - Net loss for the three months ended March 31, 2025, was $60.6 million, compared to a net loss of$44.3 million in the same period of 2024 [130]. - Cost of revenues rose by $18.7 million, or 27$87.3 million, with space systems cost of revenue increasing by 33% [132]. - Research and development expenses increased by $16.6 million, or 43$55.1 million, primarily due to Neutron development and increased staffing [133]. - Selling, general and administrative expenses rose by $10.6 million, or 37$39.3 million, mainly due to increased staffing to support revenue growth [134]. Cash and Investments - Cash and cash equivalents as of March 31, 2025, totaled $303.1 million, with marketable securities at$209.2 million [138]. - Net cash used in operating activities was $54.2 million, consisting of a$60.6 million net loss and $29.2 million in non-cash activities [145]. - Cash provided by financing activities was$115.5 million, primarily from $90.7 million in net proceeds from the issuance of common stock [148]. - As of March 31, 2025, the company had cash and cash equivalents of$303.1 million and $209.2 million invested in marketable securities [153]. Strategic Initiatives - The company has made strategic acquisitions, including Sinclair Interplanetary and SolAero Technologies Corp., to enhance its spacecraft components and manufacturing capabilities [109]. - The company expects to continue investing in product development, marketing, and operational improvements to support future growth [147]. Market Risks - The company is exposed to market risks due to fluctuations in foreign currency exchange rates, interest rates, and inflation, which may impact its financial position [151]. - The reporting currency is the U.S. dollar, and a 10$1,066.9 million as of March 31, 2025, with $644.8 million related to space systems and$422.1 million related to launch services [120]. - Government expenditures and private enterprise investment are anticipated to continue fueling growth in the company's target markets, supporting customer purchases of products and services [114]. - Research and development expenses are expected to decline as a percentage of total revenue over time, despite ongoing investments in new product development, including the Neutron launch vehicle [126]. New Product Development - The Neutron medium-capacity launch vehicle is expected to increase payload capacity to approximately 15,000 kg for low Earth orbit, with capabilities for human space flight and larger payloads [107]. - The company plans to implement measures to mitigate the impact of increased tariffs on its supply chain and business operations, which could have a material adverse effect [110].