SpaceX IPO Sparks Investor Excitement

Rowan Ashford

Published: April 5, 2026 8:57 PM ET

Investors are abuzz with excitement following SpaceX’s confidential initial public offering (IPO) filing, coupled with a projected valuation exceeding $1.75 trillion. This milestone has resulted in a surge of interest in space-related stocks across the market. However, a broad approach may lead investors to inadvertently back companies with uncertain business models and minimal revenue streams.

Rocket Lab: Leading the Charge in Space Industry

Currently, Rocket Lab stands out as the only publicly traded company making substantial progress in the entire space value chain. The company engages in every aspect, from launching rockets to spacecraft manufacturing and launching communication hardware.

Vertical Integration for Proven Results

Rocket Lab’s Electron rocket has enjoyed nearly three dozen successful missions. In 2025, it generated $199 million in revenue from its launch services, with the average earning per launch increasing to $8.5 million from $7.8 million the previous year. The Space Systems segment contributed significantly, accounting for approximately 67% of total revenue at $402.8 million.

Thanks to its strategy of vertical integration, Rocket Lab reported record gross margins of 38% in GAAP terms during Q4, marking an impressive increase of 780 basis points year-over-year. The company achieved full-year revenues of $602 million in 2025, reflecting a 38% rise from the previous year. Notably, Q4 revenues reached $180 million, exceeding consensus estimates.

Robust Backlog and Future Contracts

Rocket Lab’s backlog expanded to $1.85 billion, with approximately 37% of it anticipated to convert into revenue within the next year. This visibility offers a clear edge over competitors still navigating funding rounds rather than securing contracts.

Record 2025 Revenue: $602 Million (up 38% YoY)
Q4 Revenue: $180 Million (up 36% YoY)
Backlog: $1.85 Billion (73% increase)

Strategic Acquisitions and Growth Potential

In support of its growth strategy, Rocket Lab recently secured regulatory approval to acquire Mynaric, a company specializing in laser optical communications. This acquisition will enhance Rocket Lab’s European presence and capabilities in high-speed satellite data links. The deal is valued at around $75 million, with closing slated for this month.

Defense Sector Contracts

Defense contracts play a crucial role in Rocket Lab’s growth trajectory. The U.S. Space Development Agency awarded the company an $816 million prime contract to deliver 18 missile-warning and tracking satellites. Additionally, Rocket Lab secured a $190 million contract for hypersonic test flights.

Challenges and Future Outlook

Despite these advancements, Rocket Lab continues to report losses. The company posted a net loss for the full year of 2025, with a Q4 GAAP EPS loss of $0.09. The upcoming guidance for Q1 anticipates revenue of $185 million to $200 million. Analysts suggest that breaking even could take until 2027 or later.

Risks such as launch delays or changes in government spending could impact performance. Currently, Rocket Lab’s shares reflect premium valuations in light of market growth expectations, yet the company is actively generating revenue and possesses a robust backlog.

Conclusion: Investment Opportunities in the Space Sector

For investors looking to capitalize on the burgeoning space industry, Rocket Lab offers a compelling opportunity. With $602 million in annual revenue, a $2 billion backlog, and recent military contracts, Rocket Lab represents a solid investment choice. As excitement around SpaceX’s IPO grows, Rocket Lab delivers tangible results today, making it an appealing option for both retail and institutional investors.