Rocket Lab CorpRKLB
Rocket Lab Corp Revenue Disclosure
REVENUES
The Company disaggregates revenue by reportable segment and revenue recognition pattern, as it believes these categories best depicts how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors. The following tables provide information about disaggregated revenue and a reconciliation of the disaggregated revenue during the years ended December 31, 2025, 2024 and 2023:
| Year Ended December 31, 2025 | |||||||||||||||||
| Launch Services | Space Systems | Total | |||||||||||||||
| Revenues by recognition model | |||||||||||||||||
| Point-in-time | $ | 159,308 | $ | 107,432 | $ | 266,740 | |||||||||||
| Over-time | 39,734 | 295,325 | 335,059 | ||||||||||||||
| Total revenue by recognition model | $ | 199,042 | $ | 402,757 | $ | 601,799 | |||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||
| Launch Services | Space Systems | Total | |||||||||||||||
| Revenues by recognition model | |||||||||||||||||
| Point-in-time | $ | 125,338 | $ | 74,636 | $ | 199,974 | |||||||||||
| Over-time | 38 | 236,202 | 236,240 | ||||||||||||||
| Total revenue by recognition model | $ | 125,376 | $ | 310,838 | $ | 436,214 | |||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||
| Launch Services | Space Systems | Total | |||||||||||||||
| Revenues by recognition model | |||||||||||||||||
| Point-in-time | $ | 71,131 | $ | 46,704 | $ | 117,835 | |||||||||||
| Over-time | 763 | 125,994 | 126,757 | ||||||||||||||
| Total revenue by recognition model | $ | 71,894 | $ | 172,698 | $ | 244,592 | |||||||||||
The timing of revenue recognition, billings, and cash collections results in billed accounts receivable, unbilled receivables (presented within contract assets) and customer advances and deposits (presented within contract liabilities) on the consolidated balance sheets, where applicable. Amounts are generally billed as work progresses in accordance with agreed-upon milestones. These individual contract assets and liabilities are reported in a net position on a contract-by-contract basis on the consolidated balance sheets at the end of each reporting period.
The following table presents the balances related to enforceable contracts as of December 31, 2025 and 2024:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Contract balances | |||||||||||
| Accounts receivable, net | $ | 39,001 | $ | 36,440 | |||||||
| Contract assets | 61,606 | 63,108 | |||||||||
| Contract liabilities | (195,438) | (216,160) | |||||||||
Changes in contract liabilities were as follows:
| 2025 | 2024 | 2023 | |||||||||||||||
| Contract liabilities, beginning of year | $ | 216,160 | $ | 139,338 | $ | 108,344 | |||||||||||
| Contract liabilities assumed at acquisition | 842 | — | — | ||||||||||||||
| Customer advances received or billed, net | 160,887 | 176,763 | 137,158 | ||||||||||||||
| Recognition of unearned revenue | (182,451) | (99,941) | (106,164) | ||||||||||||||
| Contract liabilities, end of year | $ | 195,438 | $ | 216,160 | $ | 139,338 | |||||||||||
The revenue recognized from the contract liabilities consisted of the Company satisfying performance obligations during the normal course of business.
The amount of revenue recognized in the aggregate from changes in the transaction price or estimated costs to complete associated with performance obligations satisfied in prior periods during the year ended December 31, 2025, included a $15,055 downward adjustment to revenue and a $7,140 upward adjustment to revenue, resulting in a net downward adjustment of $7,915, respectively. Included in the downward adjustment for the year ended December 31, 2025, the Company recorded a downward adjustment to revenue of $12,818 related to an individual contract. This cumulative catch-up adjustment resulted from changes in the estimated costs to complete the contract. For the years ended December 31, 2024 and 2023, the impact was not material.
In February 2022, the Company entered into a procurement agreement with MDA Corporation to design and manufacture of 17 spacecraft buses (the “MDA Contract”). The Company has determined that the projected delivery dates for certain deliverables will be later than the dates originally set out under the MDA Contract. This delay is the result of a number of factors, including delays that have arisen in the Company’s supply chain. Under the terms of the MDA Contract, the customer is potentially entitled to claim liquidated damages as a result of this delivery delay. The Company is similarly entitled to claim liquidated damages against certain suppliers that have contributed to these delays. At this time, it is not possible to determine with certainty the net amount, if any, of actual liquidated damages that could ultimately be incurred.
Backlog
The Company’s backlog represents the estimated transaction prices on performance obligations to the Company’s customers for which work remains to be performed. The amount of backlog increases with new contracts or additions to existing contracts and decreases as revenue is recognized on existing contracts. Contracts are included in the amount of backlog when an enforceable agreement has been reached. Remaining backlog totaled $1,847,322 as of December 31, 2025, of which approximately 37% is expected to be recognized within 12 months, with the remaining 63% to be recognized beyond 12 months.
Customer Financing
In connection with the signing of three separate multi-launch agreements with commercial customers, the Company entered into subordinated loan and security agreements and a loan and security agreement. The commercial customers may choose to have certain milestone payments financed under the terms of the subordinated loan and security agreements. The receivables will bear no interest until the initial launch dates passes, after which interest will accrue at a fixed rate of 9.5%, 10.8% or 12.6%, based on the agreement. Principal and interest payments will be made over 12 quarterly payments from the launch date.
On July 11, 2025, the Company received a full payoff of $7,489 and terminated the subordinated loan and security agreement with one of the commercial customers.
As of December 31, 2025 and 2024, the Company had $6,750 and $4,200 customer financing in prepaids and other currents assets, respectively and $16,138 and $15,567 customer financing receivable in other non-current assets on the consolidated balance sheets, respectively. Customer financing interest income for the years ended December 31, 2025, 2024 and 2023 was $1,730, $1,213 and $371, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 7, 2023 | |
| 2021 | Mar 24, 2022 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.