10-K – 2026-02-26 – rklb-20251231.htm

Revenue Recognition
The Company generates revenue from launch services and space systems. Launch services may be provided as a mission dedicated to a single customer or as a rideshare arrangement with multiple spacecraft from multiple customers. Space systems revenue is comprised of space engineering, program management, spacecraft components, spacecraft manufacturing, space software and mission operations.
Revenue is recognized when control of the promised product or service is transferred to our customers at an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services. The Company’s revenue contracts are generally fixed-price contracts or time and materials contracts depending upon the nature of the contract. In fixed-price contracts, to the extent actual costs vary from the cost upon which the price was negotiated, the Company will generate variable levels of profit or could incur a loss.
The Company enters into contracts that can include various combinations of products and services, including contracts that contain both launch services and space systems products and services. In general, each launch and space system product or service is capable of being distinct and accounted for as separate performance obligations. Where contracts contain a single performance obligation, the entirety of the transaction price is allocated to this one performance obligation. For contracts with multiple performance obligations, the transaction price is allocated to each performance obligation based on the estimated standalone selling price of the product or service underlying each performance obligation. The standalone selling price represents the amount the Company would sell the product or service to a customer on a standalone basis.
The transaction price represents the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised services to its customers. The consideration promised within a contract may include fixed amounts and variable amounts. Variable consideration may consist of final milestone payments, mission success fees or liquidating damages that are earned or penalized if certain contractual milestones are achieved or are not achieved.
The Company estimates variable consideration at the most likely amount or expected value, which is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur.
The Company recognizes revenue when or as control is transferred to the customer, either over-time or at a point-in-time.
Generally, launch services revenue is recognized at a point-in-time when control transfers upon intentional ignition of the launch or where successful delivery milestones are applicable, such as upon delivery of the spacecraft to the specified orbit. However, launch services revenue is recognized over-time when it is determined that there is no alternative use for a launch vehicle, due to significant economic losses to direct the asset for another use or contractual limitations, and the Company has an enforceable right to payment for the services performed to date including a reasonable profit.
For launch service revenue recognized over-time, the Company uses an input method, based on costs incurred relative to total estimated costs at completion, to estimate the percentage of completion. The estimation requires judgment and is subject to many variables including but not limited to actual progress and costs incurred, labor productivity, changes in cost and availability of materials.
Revenue for space systems is recognized at a point-in-time or over-time depending upon the nature of the contract with customer. For contracts to provide space engineering, program management and mission operations, the Company recognizes revenues over-time as the customer simultaneously receives and consumes the benefits as the Company performs. Similarly, spacecraft manufacturing is recognized over-time when it is determined that there is no alternative use for the spacecraft, due to contractual or practical limitations, and where the Company has an enforceable right to payment for the services performed to date including a reasonable profit. Contracts to provide components for spacecraft that do not qualify for over-time recognition are recognized at a point-in-time when control is transferred.
For revenue recognized over-time, the Company uses either an input method, based on costs incurred relative to total estimated costs at completion, to estimate the percentage of completion, or an output method, based upon days of service, depending upon the nature of the performance obligation. For revenues measured utilizing an input method, the costs incurred are determined by assessing the physical and technical progress on the performance obligation applied to the standard costs. Due to the nature of the work performed under spacecraft construction contracts, the estimation of physical and technical progress requires judgment and is subject to many variables including but not limited to actual progress and costs incurred, labor productivity, changes in cost and availability of materials.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
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Significant estimates and assumptions are made in estimating contract costs. At the outset of an over-time contract, the Company identifies and monitors risks related to technical, schedule, and cost aspects of the contract, as well as the Company’s ability to earn variable consideration. These risks are assessed throughout the contract period and may result in changes to our estimates of the transaction price or total costs to complete the contract. When such changes occur, we recognize cumulative adjustments to revenue and profit in the period the changes are identified, reflecting the inception-to-date effect of the revised estimates. These adjustments may favorably or unfavorably impact the Company’s gross margin.
If our actual costs exceed our estimates, our margins and profits are reduced and we could incur a provision for contract loss. A provision for contract loss is when estimates of total costs to be incurred on a contract exceed total estimates of the transaction price. When this occurs, a provision for the entire loss is determined at the contract level and is recorded in the period in which the loss is evident.
Contracts for space software provide the customer with a right to use the software as it exists when made available to the customer. Customers may purchase perpetual entity-wide licenses or mission-based licenses, which provide customers with the same functionality and differ primarily in the number of spacecraft into which the software may be integrated. Revenue from space software is recognized upfront at the point-in-time when the software is made available to the customer. Revenue from software maintenance is recognized ratably over the maintenance period.
Due to their nature, time and materials contracts contain variable consideration; however, in general, the Company’s performance obligations under time and materials contracts qualify for the “right to invoice” practical expedient. Under this practical expedient, the Company recognizes revenue, over time, in the amount to which the Company has a right to invoice. In addition, the Company is not required to estimate such variable consideration upon inception of the contract and reassess the estimate each reporting period. The Company determined that this method best represents the transfer of services as, upon billing, the Company has a right to consideration from a customer in an amount that directly corresponds with the value to the customer of the Company’s performance completed to date.
Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.
Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers.
Contract assets include unbilled amounts under contracts when revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional and the invoice is issued. Contract assets are classified as current assets consistent with our operating cycle. These contract assets are not considered a significant financing component of the Company’s contracts as the payment terms are intended to protect the customer in the event the Company does not perform on its obligations under the contract. Contract liabilities primarily consists of customer billings in advance of revenues being recognized. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements.
Cost of Revenues
Cost of revenues, for both products and services, consists primarily of direct material and labor costs, manufacturing overhead, freight expense, depreciation and amortization and other personnel-related expenses, which include salaries, bonuses, benefits and stock-based compensation expense, directly associated with generating revenues.
Research and Development, net
Research and development, net consists of labor, prototype, professional services, materials, facilities and depreciation expense related to the development of our Neutron launch vehicle, space system platforms and components. These costs are based on a cost model for research and development relating to internal product development programs not associated with customer contractual arrangements. These costs are presented net of government grants on the consolidated statements of operations and comprehensive loss. These costs are expensed as incurred until the program transitions from development to commercial production, at which point costs may be capitalized as inventory.
Selling, General and Administrative
Selling, general and administrative expenses consist of indirect costs, including management and executive compensation, corporate costs related to finance, accounting, human resources, information technology, legal, administrative, safety, professional services, rent, advertising costs and other general expenses.
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Government Assistance
The Company receives government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received.
The Company records incentives related to operating activities as a reduction to expense in the same line item on the consolidated statements of operations and comprehensive loss as the expenditure for which the grant is intended to compensate. The Company records capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our consolidated balance sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset.
The Company has applied for tax credits related to a research and development tax incentive program with the New Zealand government. This tax incentive will reimburse up to 15 % of the Company’s qualifying research and development costs incurred. The Company has various research government assistance awards which includes the Air Force Research Laboratory and the U.S. Space Force’s Space Systems Command. The Company applied for the employee retention credit under the CARES Act during the year ended December 31, 2023. On November 22, 2024, the Company entered into a direct funding agreement with the U.S. Department of Commerce to receive direct funding for the procurement, installation and qualification of new manufacturing equipment and will also receive funding by claiming the refundable Advanced Manufacturing Investment Credit under the United States CHIPS and Science Act of 2022.
The Company recorded $ 2,130 of government assistance as a reduction of cost of revenues during the year ended December 31, 2023.The Company recorded $ 18,976 , $ 12,983 and $ 27,385 of government assistance as a reduction of research and development, net during the years ended December 31, 2025, 2024 and 2023, respectively. The Company recorded $ 0 , $ 250 and $ 1,080 of government assistance as a reduction of selling, general and administrative during the years ended December 31, 2025, 2024 and 2023, respectively. During the years ended December 31, 2025 and 2024, the Company recorded capital expenditure incentive of $ 1,536 and $ 2,186 as an offset to property, plant and equipment, net, respectively .
As of December 31, 2025 and 2024, prepaids and other current assets includes government assistance receivables of $ 15,629 and $ 7,783 , respectively. As of December 31, 2025 and 2024, other non-current assets includes government assistance receivables of $ 0 and $ 5,863 , respectively.
Stock-Based Compensation
The Company’s stock compensation plan is classified as an equity plan which permits stock awards in the form of employee stock options and restricted stock awards. For awards that vest solely based on continued service, the fair value of an award is recognized as an expense over the requisite service period on a straight-line basis.
The fair value of stock options under the Company’s employee equity incentive plan are estimated as of the grant date using the Black-Scholes option valuation model, which is affected by the fair value per share of common stock, the expected share price volatility of its common shares over the expected term, expected term, risk-free interest rate and expected dividend yield, which are estimated as follows:
• Fair value per share of common stock . The fair value of common stock is based on the market price of our common stock underlying the awards on the grant date.
• Expected volatility . The volatility is based on the weighted average historical volatilities of the Company and a pool of public companies that are comparable to the Company. Expected volatility represents the estimated volatility of the shares over the expected life of the options.
• Expected term . The Company determines the expected term of the awards using the simplified method. The simplified method estimates the expected term based on the average of the vesting period and contractual term of the stock option.
• Risk-free interest rate . The risk-free interest rate for periods within the expected life of the option is derived from the U.S. treasury interest rates in effect at the date of grant.
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• Estimated dividend yield . The Company uses an expected dividend yield of zero since no dividends are expected to be paid.
The fair value of restricted stock units granted under the Company’s employee equity incentive plans are estimated as of the grant date in an amount equal to the estimated fair value per share of the Company’s common stock.
Forfeitures are recognized as incurred. Unless otherwise approved, options must be exercised while the individual is an employee or within 90-days of termination when applicable. The expiration date of newly issued options is ten years after grant date unless earlier terminated as provided for in the Rocket Lab 2021 Stock Option and Incentive Plan.
The assumptions used in calculating the fair value of stock-based awards represent our best estimates, however, these estimates involve inherent uncertainties and the application of judgment. As a result, if factors change or we use different assumptions, stock-based compensation expense could be materially different in the future.
Income Taxes
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized by applying the statutory tax rates in effect in the years in which the differences between the financial reporting and tax filing bases of existing assets and liabilities are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.
The Company utilizes a two-step approach to recognizing and measuring uncertain income tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company makes estimates, assumptions and judgments to determine its provision for income taxes and also for deferred tax assets and liabilities and any valuation allowances recorded against deferred tax assets. Actual future operating results and the underlying amount and type of income could differ materially from the Company’s estimates, assumptions and judgments thereby impacting its consolidated financial position and results of operations.
Segment Information
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in two reportable segments: launch services and space systems.
Foreign Currencies
The functional currency of certain of the Company’s wholly owned subsidiaries is the currency of the primary economic environment in which they operate. Assets and liabilities denominated in currencies other than the functional currency are remeasured at the exchange rate in effect on the balance sheet date, with exchange differences or remeasurement included in other income, net on the consolidated statement of operations and comprehensive loss. Revenue and expenses are translated at average rates of exchange prevailing during the respective period. Translation adjustments resulting from this process are recorded as a component of accumulated other comprehensive income (loss) in the consolidated statements of changes in stockholders’ equity.
Leases
The Company leases certain property, vehicles and equipment. At contract inception, the Company determines if a contract contains a lease and whether the lease should be classified as an operating or financing lease.
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Right of use (“ROU”) assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, it uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also includes any lease prepayments made and excludes lease incentives. The Company’s lease terms include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Finance leases result in the recognition of depreciation expense, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method.
The Company excludes short-term leases (term of 12 months or less) from the balance sheet presentation and accounts for non-lease and lease components in a contract as a single lease component for certain asset classes.
Convertible Senior Notes
The Company accounts for convertible senior notes under Accounting Standards Codification (“ASC”) ASC 470-20 - Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity's Own Equity (“ASU 2020-06”). The Company records the convertible senior notes as a long-term liability at face value net of debt issuance costs. If certain conditions to the convertibility of the convertible senior notes are satisfied, or the convertible senior notes become due within one year, then the Company may be required under applicable accounting standards to reclassify the carrying value of the convertible senior notes as a current, rather than a long-term liability. If it is determined that the Company cannot be required to settle the Notes in cash and has the intent and ability to settle in common stock, the Notes are classified as non-current liabilities on the Company’s consolidated balance sheet.
Debt issuance costs related to the convertible senior notes were capitalized and recorded as a contra-liability and are presented net against the convertible senior notes balance on the consolidated balance sheets. Debt issuance costs consist of underwriting, legal and other direct costs related to the issuance of the convertible senior notes and are amortized to interest expense over the term of the convertible senior notes using the effective interest method.
Capped Call Transactions
Capped call transactions cover the aggregate number of shares of the Company’s common stock that will initially underlie the convertible senior notes. The Company determined that the freestanding capped call option contracts qualify as equity under the accounting guidance on indexation and equity classification, and recognized the contract by recording an entry to Additional paid-in capital in stockholders’ equity in the consolidated balance sheets and not remeasured.
Warrants
The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480, Distinguishing Liabilities from Equity, and ASC 815, Derivative and Hedging. For warrants that meet all the criteria for equity classification, the warrants are recorded as a component of additional paid-in capital at the time of issuance. Warrants classified as liabilities are recognized at fair value and remeasured at fair value at each reporting period with any change in fair value recognized in the consolidated statements of operations and comprehensive loss.
Recent Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which focuses on the rate reconciliation and income taxes paid. ASU 2023-09 requires a public business entity (“PBE”) to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, further broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign jurisdictions, and further by individual jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. For PBEs, the new standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 prospectively for the period ending December 31, 2025, and it affects only our disclosures and does not impact our results of operations or financial condition.
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In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (DISE) (“ASU 2024-03”), which requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The amendments in ASU 2024-03 will be applied prospectively with the option for retrospective application and early adoption is permitted. The Company is assessing the potential impact of adopting ASU 2024-03 on its financial statements.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”), which modernizes the accounting for internal-use software. ASU 2025-06 removes all references to software development stages and requires capitalization of software costs when management has committed to the software project and it is probable the software will be completed and perform its intended use. ASU 2025-06 is effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted and can be applied on either a prospective, modified, or retrospective basis. The Company is assessing the potential impact of adopting ASU 2025-06 on its financial statements.
In December 2025, the FASB issued ASU No. 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities (“ASU 2025-10”). ASU 2025-10 establishes guidance for the recognition, measurement, and presentation of government grants received by business entities. Under the new standard, a government grant is recognized only when it is probable that (i) the entity will satisfy the grant’s conditions and (ii) the grant will be received. If those conditions are met, the grant is classified either as a grant related to income or as a grant related to an asset, and the classification determines the appropriate accounting treatment. ASU No. 2025-10 retains the existing disclosure requirements in Topic 832, Government Assistance. For public business entities, the amendments are effective for annual reporting periods beginning after December 15, 2028, and for interim reporting periods within those annual reporting periods, with early adoption permitted. Entities may adopt the amendments using a modified-prospective, modified-retrospective, or full-retrospective approach for all government grants. We are currently evaluating the impact of the ASU on our disclosures and financial statements, including the approach and the timing of adoption.

3. 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  

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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.
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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.

4. BUSINESS COMBINATIONS AND ASSET ACQUISITIONS
GEOST
On August 12, 2025, the Company closed the acquisition of GEOST LLC ( “GEOST”) pursuant to a Stock Purchase Agreement (the “GEOST Purchase Agreement”), by and among Rocket Lab USA, LightRidge Solutions Holdings LP (“LightRidge Solutions”), and LightRidge Interco Solutions Holdings, Inc. (“LightRidge Interco”), which provided for, among other things, the Company’s purchase and acquisition of all of the issued and outstanding shares of common stock of LightRidge Interco, the owner of GEOST.
Pursuant to the terms of the GEOST Purchase Agreement, all of the issued and outstanding shares of LightRidge Interco were purchased in exchange for aggregate consideration of $ 275,000 , consisting of approximately $ 125,000 in cash and 3,057,588 shares of common stock, subject in each case to customary adjustments at closing, including for cash, working capital, transaction expenses and indebtedness (the “Transaction”). Additionally, the GEOST Purchase Agreement provides for up to $ 50,000 in potential additional post-closing cash earnout payments to LightRidge Solutions tied to revenue targets of the GEOST business for 2026 and 2027. Refer to the table below under “Acquisition Consideration” for additional information.
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Acquisition Consideration
The following table presents the purchase consideration and the estimates of the preliminary fair value of the assets acquired and the liabilities assumed by the Company in the acquisition:

August 12, 2025
Cash consideration $ 134,299  
Fair value of common stock issued (1)
137,653  
Contingent consideration (2)
18,258  
Purchase consideration $ 290,210  

Description
Cash and cash equivalents $ 1,280  
Accounts receivable 3,196  
Contract assets 787  
Inventories 402  
Prepaids and other current assets 1,079  
Property, plant and equipment 4,267  
Intangible assets 183,300  
Right-of-use assets - operating leases 6,553  
Other non-current assets 424  
Trade payables ( 2,467 )
Accrued expenses ( 142 )
Employee benefits payable ( 3,407 )
Contract liabilities ( 842 )
Other current liabilities ( 1,340 )
Non-current operating lease liabilities ( 5,256 )
Deferred tax liabilities ( 32,354 )
Identifiable net assets acquired 155,480  
Goodwill 134,730  
Total purchase price $ 290,210  
_____________________________________
(1) The Company issued 3,057,588 shares of common stock, with the fair value determined based on the Company’s common stock closing price of $ 45.02 on August 11, 2025.
(2) The contingent consideration, to be paid in cash, was classified as a liability and included in other non-current liabilities on the Company’s consolidated balance sheets. To estimate the fair value of the contingent consideration liability, management valued the earn-out based on the likelihood of reaching certain revenue targets. At the acquisition date, the fair value of the contingent consideration payable was measured based on a Monte Carlo simulation utilizing projections about future performance. Significant inputs at acquisition include revenue volatility of 29 %, discount rate of 10 % and projected financial information.
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The following is a summary of preliminary identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets:

Type Estimated
Life in
Years Fair
Value
Developed technology 10 $ 172,300  
Backlog 5 11,000  
Total identifiable intangible assets acquired $ 183,300  

Goodwill of $ 134,730 was recorded for the GEOST acquisition, representing the excess of the purchase price over the fair value of the identifiable net assets. The goodwill has been allocated to the space systems operating segment, reflecting the strategic operations of this operating segment. Goodwill recognized primarily represents the future revenue and earnings potential and certain other assets which were acquired, but that do not meet the recognition criteria, such as assembled workforce. The majority of goodwill is not expected to be deductible for income tax purposes.
The Company’s consolidated statements of operations for the year ended December 31, 2025 includes revenues and operating loss of $ 11,946 and $ 8,314 , respectively, related to the GEOST acquisition.
Measurement Period
During the measurement period, the Company will continue to obtain information to assist in determining the fair value of net assets acquired, which may differ materially from these preliminary estimates. Specifically, the Company is evaluating outstanding matters, including but not limited to, legal contingencies, other receivables, tax-related items and other assets. Measurement period adjustments, if applicable, will be applied in the reporting period in which the adjustment amounts are determined. Measurement period changes made in the fourth quarter of 2025 for the GEOST acquisition did not have a material impact.
Unaudited Pro Forma Information
The unaudited consolidated financial information summarized in the following table gives effect to the GEOST acquisition assuming it occurred on January 1, 2023. These unaudited consolidated pro forma operating results do not assume any impact from revenue, cost or other operating synergies that are expected as a result of the acquisition. These unaudited consolidated pro forma operating results are presented for illustrative purposes only and are not indicative of the operating results that would have been achieved had the acquisition occurred on January 1, 2023, nor does the information project results for any future period.

Years Ended December 31,
2025 2024 2023
Total revenues $ 620,840   $ 518,125   $ 318,508  
Net loss ( 220,063 ) ( 220,771 ) ( 197,208 )

Asset Purchase Agreement
On June 2, 2023, Company closed on the purchase of certain assets pursuant to an Asset Purchase Agreement (the “Virgin APA”) with Virgin Orbit Holdings, Inc. to acquire certain assets, including a real property lease for a property located in Long Beach, California and certain production assets, machinery and equipment.
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ROCKET LAB CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

The acquisition was accounted for as an asset acquisition and the total purchase price consideration of $ 16,934 (which includes $ 815 of transaction costs) was allocated to the assets acquired on a relative fair value basis. The following table presents estimates of the relative fair value of the assets acquired and the liabilities assumed by the Company in the acquisition:

Description Amount
Property, plant and equipment $ 15,658  
Right-of-use assets - operating leases 13,939  
Other non-current assets 189  
Other current liabilities ( 1,125 )
Non-current operating lease liabilities ( 10,375 )
Other non-current liabilities ( 1,352 )
Total purchase price $ 16,934  

5. CASH AND CASH EQUIVALENTS AND MARKETABLE SECURITIES
Cash and cash equivalents and marketable securities consisted of the following as of December 31, 2025 and 2024:

December 31,
2025 2024
Cash and cash equivalents $ 828,660   $ 271,042  
Marketable securities, current 187,917   147,948  
Marketable securities, non-current 82,247   60,686  
Total cash and cash equivalents and marketable securities $ 1,098,824   $ 479,676  

As of December 31, 2025, cash equivalents and marketable securities consisted of the following:

Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities
Money market accounts $ 741,498   $ —   $ —   $ 741,498   $ 741,498   $ —  
Certificates of deposit 13,168   9   —   13,177   1,556   11,621  
Commercial paper 27,769   7   —   27,776   —   27,776  
Corporate debt securities 136,434   169   ( 17 ) 136,586   —   136,586  
Yankee bonds 5,339   12   —   5,351   —   5,351  
U.S. Treasury securities 48,978   90   —   49,068   —   49,068  
Asset-backed securities 39,637   125   —   39,762   —   39,762  
Total $ 1,012,823   $ 412   $ ( 17 ) $ 1,013,218   $ 743,054   $ 270,164  

The following table presents the Company’s cash equivalents and marketable securities with unrealized losses by investment category and the length of time the marketable securities have been in a continuous loss position as of December 31, 2025:

In Loss Position for
Less than 12 Months
Fair Value Unrealized Losses
Corporate debt securities $ 25,198   $ ( 17 )

Total $ 25,198   $ ( 17 )

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ROCKET LAB CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

The Company has not observed a significant deterioration in credit quality of these securities, which are highly rated with moderate to low credit risk. Declines in value are largely attributable to current global economic conditions. The securities continue to make timely principal and interest payments, and the fair values are expected to recover as they approach maturity. The Company does not intend to sell the securities, and it is not more likely than not that the Company will be required to sell the securities, before the respective recoveries of their amortized cost bases, which may be maturity. As of December 31, 2025, the Company had not recognized an allowance for credit losses on any marketable securities in an unrealized loss position.
The following table summarizes the contractual maturities of the Company’s cash equivalents and marketable securities as of December 31, 2025:

Amortized Cost Fair Value
Due within one year $ 930,713   $ 930,971  
Due within one to two years 82,110   82,247  
Total $ 1,012,823   $ 1,013,218  

6. FAIR VALUE OF FINANCIAL INSTRUMENTS
As of December 31, 2025 and 2024, the following financial assets and liabilities are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as follows:

December 31, 2025
Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents:
Money market accounts $ 741,498   $ —   $ —   $ 741,498  
Certificates of deposit —   1,556   —   1,556  
Marketable securities, current:
Certificates of deposit —   9,294   —   9,294  
Commercial paper —   27,776   —   27,776  
Corporate debt securities —   103,077   —   103,077  
Yankee bonds —   5,351   —   5,351  
U.S. Treasury securities 40,576   —   —   40,576  
Asset-backed securities —   1,843   —   1,843  
Marketable securities, non-current
Certificates of deposit —   2,327   —   2,327  
Corporate debt securities —   33,509   —   33,509  
U.S. Treasury securities 8,492   —   —   8,492  
Asset-backed securities —   37,919   —   37,919  
Total $ 790,566   $ 222,652   $ —   $ 1,013,218  
Liabilities:
Other non-current liabilities:
Contingent consideration $ —   $ —   $ 7,634   $ 7,634  
Total $ —   $ —   $ 7,634   $ 7,634  

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ROCKET LAB CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

December 31, 2024
Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents:
Money market accounts $ 211,619   $ —   $ —   $ 211,619  
Marketable securities, current:
Certificates of deposit —   21,795   —   21,795  
Commercial paper —   10,109   —   10,109  
Corporate debt securities —   57,589   —   57,589  
Yankee bonds —   2,208   —   2,208  
U.S. Treasury securities 55,568   —   —   55,568  
Mortgage- and asset-backed securities —   680   —   680  
Marketable securities, non-current
Corporate debt securities —   28,887   —   28,887  
Yankee bonds —   378   —   378  
U.S. Treasury securities 10,552   —   —   10,552  
Mortgage- and asset-backed securities —   20,869   —   20,869  
Total $ 277,739   $ 142,515   $ —   $ 420,254  

The estimated fair value amounts shown above are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or ability to dispose of the financial instrument.
There were no transfers between fair value measurement levels during the years ended December 31, 2025 and 2024.
Contingent Consideration
The Company recorded a contingent consideration liability related to potential earnout payments based on revenue targets pursuant to the GEOST Purchase Agreement. The estimated fair value of the contingent consideration is recorded using significant unobservable measures and other fair value inputs and is therefore classified as a Level 3 financial instrument.
The following table presents contingent consideration obligations measured on a recurring basis using Level 3 inputs for the year ended December 31, 2025:

December 31, 2024
$ —  
Acquisition-related contingent consideration 18,258  
Fair value adjustment
( 10,624 )
December 31, 2025
$ 7,634  

During the year ended December 31, 2025, the fair value of contingent consideration for the earn-out in connection with the acquisition of GEOST decreased, primarily due to a push out of forecasted revenues, resulting from the delay in contract awards caused by the government shutdown.
Convertible Senior Notes
The Company measures the fair value of its convertible senior notes on a quarterly basis for disclosure purposes. The Company considers the fair value of its convertible senior notes as of December 31, 2025 to be a Level 2 measurement due to limited trading activity of the convertible senior notes. As of December 31, 2025, the net carrying amount of the convertible senior notes was $ 152,395 , with unamortized discount and debt issuance costs of $ 3,259 . As of December 31, 2025, the total estimated fair value (Level 2) of the convertible senior notes was $ 2,185,440 . The fair value was determined based on the closing trading price of the convertible senior notes as of the last day of trading for the period.
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ROCKET LAB CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

7. INVENTORIES
Inventories as of December 31, 2025 and 2024 consisted of the following:

December 31,
2025 2024
Raw materials $ 76,739   $ 50,650  
Work in process 68,712   60,462  
Finished goods 12,956   7,962  
Total inventories $ 158,407   $ 119,074  

8. PREPAIDS AND OTHER CURRENT ASSETS
Prepaids and other current assets as of December 31, 2025 and 2024 consisted of the following:

December 31,
2025 2024
Prepaid expenses and deposits $ 57,738   $ 38,041  
Government grant receivables 15,629   7,783  
Customer financing receivables 6,750   4,200  
Other current assets 9,836   4,985  
Total prepaids and other current assets $ 89,953   $ 55,009  

9. ASSETS HELD FOR SALE
In the first quarter of 2023, the Company updated its Electron recovery strategy by completing a marine recovery, which we believe will be a more effective and financially viable type of recovery. As a result, the Company has ceased mid-air rocket booster recovery and began the sale process of two helicopters. As of March 31, 2023, the Company’s two helicopters met the held for sale criteria and the Company ceased depreciating these assets.
On June 6, 2024, the Company sold one of the Company’s held for sale helicopters to a purchaser unaffiliated with the Company, for $ 12,030 before closing costs and holdbacks. The Company recognized a gain on sale of assets related to the sale of the helicopter and spare parts of $ 2,825 included in other income, net in the consolidated statements of operations and comprehensive loss during the year ended December 31, 2024.
On October 18, 2023, the Company sold one of the Company’s held for sale helicopters to a purchaser unaffiliated with the Company, for $ 3,900 before closing costs. The Company recognized a gain on sale of assets of $ 1,094 included in other income, net in the consolidated statements of operations and comprehensive loss during the year ended December 31, 2023.

10. PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, net, as of December 31, 2025 and 2024 consisted of the following:

December 31,
2025 2024
Buildings and improvements $ 78,564   $ 68,631  
Machinery, equipment, vehicles and office furniture 174,526   127,577  
Computer equipment, hardware and software 20,751   16,204  
Launch site assets 25,330   20,726  
Construction in process 111,167   27,285  
Property, plant and equipment—gross 410,338   260,423  
Less accumulated depreciation and amortization ( 90,865 ) ( 65,585 )
Property, plant and equipment—net $ 319,473   $ 194,838  

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ROCKET LAB CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

Depreciation expense recorded in the consolidated statements of operations and comprehensive loss during the years ended December 31, 2025, 2024 and 2023 consisted of the following:

Years Ended December 31,
Depreciation expense 2025 2024 2023
Cost of revenues $ 12,749   $ 11,088   $ 8,481  
Research and development, net 8,433   5,890   4,700  
Selling, general and administrative 4,187   2,798   2,226  
Total depreciation expense $ 25,369   $ 19,776   $ 15,407  

11. GOODWILL AND INTANGIBLE ASSETS, NET
Goodwill
The carrying amount of goodwill for the space systems reportable segment was $ 205,750 and $ 71,020 and as of December 31, 2025 and 2024, respectively. No impairment losses have been recognized on goodwill to date.
Intangible Assets
The components of intangible assets consisted of the following as of December 31, 2025 and 2024:

December 31, 2025
Gross
Carrying
Amount Accumulated
Amortization Net Carrying
Amount
Finite-Lived Intangible Assets
Developed Technology $ 230,165   $ ( 37,238 ) $ 192,927  
Capitalized software 14,558   ( 11,164 ) 3,394  
Customer relationships 16,114   ( 5,786 ) 10,328  
Trademarks and tradenames 10,102   ( 3,443 ) 6,659  
Backlog 14,491   ( 4,343 ) 10,148  
Other 1,399   ( 609 ) 790  
Indefinite-Lived Intangible Assets
In-process technology 500   —  500  
Total $ 287,329   $ ( 62,583 ) $ 224,746  

  December 31, 2024
  Gross
Carrying
Amount Accumulated
Amortization Net Carrying
Amount
Finite-Lived Intangible Assets
Developed Technology $ 57,865   $ ( 23,512 ) $ 34,353  
Capitalized software 13,757   ( 9,873 ) 3,884  
Customer relationships 16,086   ( 4,472 ) 11,614  
Trademarks and tradenames 10,098   ( 2,610 ) 7,488  
Backlog 3,491   ( 3,491 ) —  
Other 1,320   ( 522 ) 798  
Indefinite-Lived Intangible Assets
In-process technology 500   —  500  
Total $ 103,117   $ ( 44,480 ) $ 58,637  

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ROCKET LAB CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

Amortization expense recorded in the consolidated statements of operations and comprehensive loss during the years ended December 31, 2025, 2024 and 2023, respectively consisted of the following:

Years Ended December 31,
2025 2024 2023
Cost of revenues $ 13,899   $ 7,110   $ 7,106  
Research and development, net 16   45   90  
Selling, general and administrative 4,041   4,913   5,904  
Total amortization expense $ 17,956   $ 12,068   $ 13,100  

The following table outlines the estimated future amortization expense related to finite-lived intangible assets held as of December 31, 2025:

2026 $ 29,730  
2027 28,755  
2028 27,718  
2029 25,512  
2030 21,690  
Thereafter 90,841  
Total $ 224,246  

12. LOAN AGREEMENTS
Indenture and Notes
On February 6, 2024, the Company issued $ 355,000 aggregate principal amount of its 4.250 % Convertible Senior Notes due 2029 (the “Notes”). The Notes were issued pursuant to, and are governed by, an indenture (the “Indenture”), dated as of February 6, 2024, between the Company and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”).
The Notes are the Company’s senior, unsecured obligations and are (i) equal in right of payment with the Company’s existing and future senior, unsecured indebtedness; (ii) senior in right of payment to the Company’s future indebtedness that is expressly subordinated to the Notes in right of payment; (iii) effectively subordinated to the Company’s existing and future secured indebtedness, including borrowings under its equipment financing agreement, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity, if any, of the Company’s subsidiaries.
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ROCKET LAB CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

The Notes accrue interest at a rate of 4.250 % per annum, payable semi-annually in arrears on February 1 and August 1 of each year, beginning on August 1, 2024. The Notes mature on February 1, 2029, unless earlier converted, redeemed or repurchased. Before November 1, 2028, noteholders have the right to convert their Notes only during the following circumstances: (i) during any calendar quarter (and only during such calendar quarter) if the last reported sale price of the Company’s common stock exceeds 130 % of the conversion price for each of at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter, (ii) during the five consecutive business day period after any 10 consecutive trading day period, or the measurement period, in which the trading price per $1 principal amount of Notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price of the Company’s common stock and the applicable conversion rate on each such trading day, (iii) upon the occurrence of certain corporate events or distributions specified in the Indenture or (iv) if the Company calls such Notes for redemption. From and after November 1, 2028, noteholders may convert their Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. The Company will settle conversions by paying or delivering, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company’s election. The initial conversion rate is 195.1029 shares of common stock per $1 principal amount of Notes, which represents an initial conversion price of approximately $ 5.13 per share of common stock. The conversion rate and conversion price are subject to customary adjustments upon the occurrence of certain events. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. As of December 31, 2025, the holder of the Notes have the right to convert between January 1, 2026 and March 31, 2026 because the Company’s common stock price exceeded the applicable conversion price by 130 % for the specified period of time during the quarter ended December 31, 2025.
When a conversion notice is received, the Company has the option to pay or deliver cash, shares of the Company’s common stock, or a combination thereof. During the year ended December 31, 2025, the Company received conversion notices for $ 199,346 aggregate principal amount of Notes. These conversions resulted in the issuance of 38,892,968 shares of common stock in accordance with the terms of the Indenture governing the Notes. As of December 31, 2025, the Company cannot be required to settle the Notes in cash and has the intent and ability to settle in common stock, therefore, the Notes were classified as non-current liabilities on the Company’s consolidated balance sheet.
As of December 31, 2025, there was $ 155,654 outstanding under the Notes, before unamortized discount and debt issuance costs of $ 3,259 . As of December 31, 2025, the effective interest rate under the Notes was 5.0 %.
Capped Call Transactions
In connection with the pricing of the Notes, on February 1, 2024 and February 2, 2024, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain financial institutions. Collectively, the Capped Call Transactions cover, subject to customary adjustments, the number of shares of common stock initially underlying the Notes. The cost of the Capped Call Transactions was $ 43,168 . The Capped Call Transactions are expected generally to reduce or offset the potential dilution to the Company’s common stock upon exercise of the Notes and/or the Company’s election to offset the cash payments the Company is required to make in excess of the principal amount of the Notes upon conversion of the Notes in the event that the market price per share of the Company’s common stock is greater than the strike price of the Capped Call Transactions (which initially corresponds to the initial conversion price of the Notes and is subject to certain adjustments under the terms of the Capped Call Transactions), with such reduction and/or offset subject to a cap based on the cap price of the Capped Call Transactions. The Capped Call Transactions have an initial cap price of $ 8.04 per share of the Company’s common stock, which represents a premium of 100 % over the last reported sale price of the Company's common stock on February 1, 2024.
The Capped Call Transactions do not meet the criteria for separate accounting as a derivative as they are indexed to the Company’s stock. The premiums paid for the Capped Call Transactions have been included as a net reduction to additional paid-in capital within shareholders’ equity.
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ROCKET LAB CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

Trinity Master Equipment Financing Agreement
On December 29, 2023 (the “Effective Date”), the Company and certain of its subsidiaries (the “Subsidiaries”, together with the Company, the “Borrowers”), entered into a Master Equipment Financing Agreement (the “Trinity Loan Agreement”) with Trinity Capital, Inc., a Maryland corporation (the “Lender”) to provide financing for certain equipment and other property (the “Equipment”). The Trinity Loan Agreement provides that the Lender shall provide equipment financing in the aggregate of up to $ 120,000 (the “Conditional Commitment”), with advances (“Draws”) to be made as follows: (i) $ 70,000 on the Effective Date (the “Effective Date Draw”); and (ii) $ 40,000 to be drawn on the Effective Date (the “Blanket Lien Draw”), with each of the Effective Date Draw and Blanket Lien Draw payable over sixty ( 60 ) months beginning January 2024, with the final payments due in January 2029. After the Blanket Lien Draw was repaid in full, Borrowers were able to make Draws as follows: (x) $ 30,000 to be drawn in not more than three advances of at least $ 10,000 each at the Borrowers’ option no later than the date that is 18 months after the Effective Date; and (y) $ 20,000 to be drawn at Borrower’s option between January 1, 2025 and June 30, 2025, subject to customary conditions.
The monthly payment factors under the Trinity Loan Agreement and Blanket Lien Draw had a term of sixty ( 60 ) months and a rate factor of 0.022266 . In connection with the Loan Agreement, the Company issued warrants to Lender to acquire 728,835 shares of the Company’s common stock at an exercise price of $ 4.87 per share (see Note 13). The proceeds from the Loan Agreement were allocated to the loan and warrants based on the relative fair value at inception, resulting in a reduction to the loan amount and amortized to interest expense over the term of the loan.
On February 8, 2024, the Company paid off all obligations under the Blanket Lien Draw in the amount of $ 38,778 , which includes principal, unpaid interest and legal fees, resulting in a loss on extinguishment of debt of $ 1,330 for the year ended December 31, 2024, included in other income, net in the consolidated statements of operations and comprehensive loss.
On March 20, 2025, the Company made a draw of $ 25,000 under the Trinity Loan Agreement (the “March 2025 Draw”). This March 2025 Draw has a term of sixty ( 60 ) months and a rate factor of 0.022266 .
On December 15, 2025, the Company paid off all obligations under the Trinity Loan Agreement in the amount of $ 69,120 , which includes principal, prepayment fees, end of term and other fees and unpaid interest, resulting in a loss on extinguishment of debt of $ 5,926 for the year ended December 31, 2025. As a result, the Trinity Loan Agreement was terminated.
Hercules Capital Secured Term Loan
On June 10, 2021, the Company entered into a $ 100,000 secured term loan agreement with Hercules Capital, Inc. (the “Hercules Capital Secured Term Loan”) and borrowed the full amount under the secured term loan agreement. The term loan had a maturity date of June 1, 2024 and was secured by substantially all of the assets of the Company. Payments due for the term loan were interest-only until the maturity date with interest payable monthly in arrears. The outstanding principal bore (i) cash interest at the greater of (a) 8.15 % or (b) 8.15 % plus the prime rate minus 3.25 % and (ii) payment-in-kind interest of 1.25 % which was accrued and added to the outstanding principal balance. Prepayment of the outstanding principal was permitted under the loan agreement and subject to certain prepayment fees. On June 10, 2021, in connection with the secured term loan, the Company paid an initial facility charge of $ 1,000 . On December 29, 2023, the Company was required to pay an end of term charge of $ 3,250 upon repayment of the loan.
On December 29, 2023, a portion of the proceeds from the Effective Date Draw and the Blanket Lien Draw were used to pay off all obligations owing pursuant to the Hercules Capital Secured Term Loan, resulting in a loss on extinguishment of debt of $ 1,732 for the year ended December 31, 2023. As a result, the Hercules Capital Secured Term Loan was terminated.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

13. STOCKHOLDERS’ EQUITY
Preferred Stock
The Company entered into an exchange agreement dated December 3, 2024 with The Equatorial Trust (the “Trust”), a family trust established by Sir Peter Beck (“Sir Peter”), the Company’s Founder, President, Chief Executive Officer and Chairman, to exchange (the “Preferred Stock Exchange”) 50,951,250 shares of the Company’s common stock into 50,951,250 shares of the Company’s Series A Convertible Participating Preferred Stock, $ 0.0001 par value per share (the “Preferred Stock”). On January 7, 2025, the Preferred Stock Exchange was consummated (the “Closing”) and the Company filed the Certificate of Designation for the Preferred Stock (the “Certificate of Designation”) with the Secretary of State of the State of Delaware, which became effective upon filing. At the Closing, the Company issued 50,951,250 shares of Preferred Stock to the Trust. On June 17, 2025, the Trust converted 5,000,000 shares of the Preferred Stock to common stock on a one -for-one basis in accordance with the Certificate of Designation.
The common stock exchanged in the Preferred Stock Exchange were reacquired at no cost and held in treasury stock until they are reissued or retired. The fair value of the Preferred Stock issued was determined to be equal to the fair value of the common stock exchanged.
The Preferred Stock has the rights and restrictions set forth in a Certificate of Designation. Each share of Preferred Stock is convertible at any time at the option of the holder of the Preferred Stock (a “Holder”) into a number of shares of Common Stock at the then-applicable conversion rate (the “Conversion Rate”). In addition, each share of Preferred Stock automatically converts into a number of shares of Common Stock at the Conversion Rate upon the earliest to occur of (a) a transfer of such share (other than to a Permitted Transferee), (b) the first date on which Sir Peter no longer serves as (i) the Chief Executive Officer of the Company or (ii) such other executive officer position of the Company as approved by the Board, (c) Sir Peter’s death or permanent disability, or (d) the first date on which the outstanding shares of Preferred Stock no longer represent a minimum beneficial ownership by Sir Peter of five percent. A “Permitted Transferee” is defined in the Certificate of Designation and includes Sir Peter and his controlled affiliates. The Preferred Stock is not redeemable by the Company at any time.
The Certificate of Designation also provides that for so long as any shares of Preferred Stock are outstanding, the Holders, voting exclusively and as a separate class, will be entitled to designate and elect at least one individual to serve on the Board as a director (a “Preferred Stock Director”). In the event the Board increases its size to more than ten members, the Holders are entitled to designate and elect, voting exclusively and as a separate class, one or more additional Preferred Stock Directors in order to maintain the right to elect ten percent of the total number of authorized directorships, rounded up to the nearest whole number. The right to designate a Preferred Stock Director is nontransferable.
Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, after the satisfaction in full of the Company’s debts and the payment of any liquidation preference ranking senior to the Preferred Stock, Holders are entitled to receive an amount equal to $ 0.0001 per share of Preferred Stock. Following the payment of the full amount of the liquidation preference in respect of all outstanding shares of Preferred Stock, Holders participate pari passu with the holders of the Common Stock (on an as-if-converted-to-Common-Stock basis) in the net assets of the Company.
The Preferred Stock is not entitled to any scheduled dividend payments. Holders will be entitled to receive dividends on shares of Preferred Stock equal (on an as-if-converted-to-common-stock basis) to, and in the same form as dividends actually paid on, all or substantially all of the shares of common stock when, as and if such dividends (other than dividends in the form of common stock) are paid on shares of the common stock, subject to certain exceptions specified in the Certificate of Designation.
The Preferred Stock will have the right to vote on all matters submitted for a vote of the holders of the common stock, voting together as a single class with the common stock. Each Holder will be entitled to cast a number of votes per share equal to the number of shares of common stock into which a share of Preferred Stock is convertible. In addition, the Company may not, without the affirmative vote of the Holders of a majority of the then outstanding shares of Preferred Stock: (a) alter, amend or repeal any provision of the Company’s certificate of incorporation if it would alter or change the powers, preferences or special rights of the Preferred Stock so as to affect them adversely, (b) alter or amend the Certificate of Designation, or (c) increase the authorized number of shares of Preferred Stock or authorize the issuance of additional shares of Preferred Stock.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

At-The-Market Offerings
On March 11, 2025, the Company entered into an ATM Equity Offering Sales Agreement (the “March Sales Agreement”) with BofA Securities, Inc., Cantor Fitzgerald & Co., Stifel, Nicolaus & Company, Incorporated and TD Securities (USA) LLC (collectively, the “March Sales Agents”), pursuant to which the Company offered and sold, from time to time, shares of its common stock having an aggregate offering price of up to $ 500,000 through the March Sales Agents, acting as its agents, or directly to the March Sales Agents, acting as principal (the “March ATM Equity Offering”).
On September 15, 2025, the Company entered into an ATM Equity Offering Sales Agreement (the “September Sales Agreement”) with BofA Securities, Inc., Cantor Fitzgerald & Co., BTIG, LLC, KeyBanc Capital Markets Inc., Citizens JMP Securities, LLC, Needham & Company, LLC and Roth Capital Partners, LLC (collectively, the “September Sales Agents”), pursuant to which the Company may offer and sell, from time to time, the shares of its common stock having an aggregate offering price of up to $ 750,000 through the September Sales Agents, acting as its agents, or directly to the September Sales Agents, acting as principal (the “September ATM Equity Offering”, and together with the March ATM Equity Offering, the “ATM Equity Offerings”). In connection with entering into the September Sales Agreement, the Company terminated the March ATM Equity Offering and the March Sales Agreement.
During the year ended December 31, 2025, the Company had sold 15,142,133 shares of common stock and generating $ 396,647 in gross proceeds, before deducting $ 9,584 in underwriting discounts, commissions and other expenses under the terminated March ATM Equity Offering.
During the year ended December 31, 2025, the Company had sold 15,662,372 shares of common stock and generating $ 749,410 in gross proceeds, before deducting $ 17,144 in underwriting discounts, commissions and other expenses under the September ATM Equity Offering.
Equity Classified Common Stock Warrants
The Company has issued equity classified warrants which are settled through issuance of common stock. Upon settlement, the warrants are recognized as additional paid-in capital, a component of equity in the consolidated balance sheets.
In connection with the Loan Agreement, the Company issued a warrant (“Warrant”), dated December 29, 2023, to purchase up to 728,835 shares of the Company’s common stock, at an exercise price of $ 4.87 per share, payable in cash or on a cashless basis according to the formula set forth in the Warrant. The exercise price of the Warrant and the number of shares issuable upon exercise of the Warrant were subject to adjustments for stock splits, combinations, stock dividends or similar events. On November 14, 2024, all 728,835 common stock warrants were exercised on a cashless basis, which resulted in the holder of the warrants receiving 540,336 shares of common stock.
The following assumptions were used in the Black-Sholes pricing model calculation for the Warrant issued:

Share price $ 5.53  
Strike price $ 4.87  
Expected volatility 82.0 %
Risk-free interest rate 3.85 %
Expected life (years) 4.0
Dividend rate None

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

14. STOCK-BASED COMPENSATION
Equity Incentive Plans
The Company has a single active equity incentive plan, the Rocket Lab 2021 Stock Option and Incentive Plan (the “2021 Plan”), with the objective of attracting and retaining available employees and directors by providing stock-based and other performance-based compensation. The Rocket Lab 2013 Stock Option and Grant Plan (the “2013 Plan”) was terminated, but outstanding awards granted thereunder remain governed by it. The 2021 Plan provides for the grant of equity awards to officers, employees, directors and other key employees as well as service providers which include incentive stock options, non-qualified stock options, restricted stock awards, unrestricted stock awards, restricted stock units or any combination of the foregoing any of which may be performance based, as determined by the Company’s Compensation Committee. An aggregate of 59,875,000 shares were initially reserved for the issuance of awards under the 2021 Plan. The number of shares reserved for issuance under the 2021 Plan automatically increases each January 1, beginning on January 1, 2022, by 5 % of the outstanding number of shares of common stock on the immediately preceding December 31, or such lesser amount as determined by the plan administrator. The Company was authorized to issue and has registered with the Securities and Exchange Commission 104,631,817 shares of common stock as equity awards to participants under the 2021 Plan as of December 31, 2025. There were 91,917,893 shares of common stock available for grant as of December 31, 2025.
Total stock-based compensation recorded in the consolidated statements of operations and comprehensive loss during the years ended December 31, 2025, 2024 and 2023 consisted of the following:

Years Ended December 31,
Stock-based compensation 2025 2024 2023
Cost of revenues $ 17,633   $ 16,657   $ 12,521  
Research and development, net 22,072   15,626   21,721  
Selling, general and administrative 31,394   24,533   19,219  
Total stock-based compensation expense $ 71,099   $ 56,816   $ 53,461  

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

Options
The following summarizes the stock option activity of the 2013 Plan for the years ended December 31, 2025, 2024 and 2023:

Options to Purchase Common Stock Weighted- Average Exercise Price per Share Weighted- Average Grant Date Fair Value
per Share Weighted- Average Remaining Contract Life
(In Years) Aggregate Intrinsic Value
Outstanding — at January 1, 2023 13,257,720 $ 1.03   $ 0.53   5.18 $ 36,306  
Exercised ( 2,623,282 ) 0.93   0.47   0.86 12,072  
Forfeited ( 7,556 ) 1.42   0.78   —  31  
Expired ( 75,596 ) 1.22   0.72   —  326  
Outstanding — at December 31, 2023 10,551,286 $ 1.06   $ 0.53   4.32 $ 47,210  
Exercised ( 3,396,050 ) 1.01   0.52   2.61 84,916  
Outstanding — at December 31, 2024 7,155,236 $ 1.08   $ 0.53   3.46 $ 174,521  
Exercised ( 2,459,098 ) 1.05   0.52   2.37 168,975  
Expired ( 543 ) 0.10   0.06   —  38  
Outstanding — at December 31, 2025 4,695,595 $ 1.10   $ 0.54   2.51 $ 322,414  
Options vested and exercisable — at December 31, 2025 4,695,595 $ 1.10   $ 0.54   2.51 $ 322,414  
Options vested and exercisable — at December 31, 2024 7,155,236 $ 1.08   $ 0.53   3.46 $ 174,521  
Options vested and exercisable — at December 31, 2023 10,551,286 $ 1.06   $ 0.53   4.32 $ 47,210  
Restricted Stock Units
The time-based service vesting condition is generally satisfied over periods of approximately four years as the employees provide service. As of December 31, 2025, the total unrecognized compensation expense related to unvested restricted stock units granted under the 2021 Plan was $ 108,823 and will be recognized upon vesting.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

The following summarizes the restricted stock unit activity of the Plan for the years ended December 31, 2025, 2024 and 2023:

Number of
Units Weighted- Average Grant Date Fair Value
Outstanding — at January 1, 2023 16,686,217 $ 5.94  
Granted 11,269,200 4.76  
Released ( 8,887,903 )
Forfeited ( 2,729,675 ) 6.01  
Outstanding — at December 31, 2023 16,337,839 5.48  
Granted 18,206,230 6.54  
Released ( 9,854,054 ) 5.45  
Forfeited ( 2,931,413 ) 5.15  
Outstanding — at December 31, 2024 21,758,602 6.43  
Granted 1,849,373 30.39  
Released ( 9,255,369 ) 7.15  
Forfeited ( 1,638,682 ) 7.91  
Outstanding — at December 31, 2025 12,713,924 $ 9.20  
Units expected to vest — at December 31, 2025 12,713,924 $ 9.20  
Units expected to vest — at December 31, 2024 21,758,602 $ 6.43  
Units expected to vest — at December 31, 2023 16,337,839 $ 5.48  

2021 Employee Stock Purchase Plan
In August 2021, the 2021 Employee Stock Purchase Plan (the “2021 ESPP”) was approved to reserve 9,980,000 shares of common stock for issuance for awards in accordance with the terms of the 2021 ESPP. In addition, the number of shares reserved for issuance will ultimately increase on January 1 of each year from 2022 to 2031 by the lesser of (i) 9,980,000 shares of common stock, (ii) 1 % of the number of shares of common stock outstanding as of the close of business on the immediately preceding December 31 or (iii) the number of common stock shares as determined by the Company’s board of directors. The purpose of the 2021 ESPP is to enable eligible employees to use payroll deductions to purchase shares of common stock and thereby acquire an interest in the Company. Eligible employees are offered shares through a 12-month offering period, which consists of two consecutive 6-month purchase periods. Employees may purchase a limited amount of shares of our stock at a discount of up to 15 % of the lesser of the fair market value at the beginning of the offering period or the end of each 6-month purchase period.
During the years ended December 31, 2025, 2024 and 2023, 602,669 , 1,473,720 and 1,369,604 shares of common stock were issued under the 2021 ESPP. As of December 31, 2025, 19,580,628 shares remain available for issuance under the 2021 ESPP. Total ESPP stock-based compensation recorded in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2025, 2024 and 2023 was $ 6,745 , $ 3,016 and $ 2,399 , respectively. As of December 31, 2025, the total unrecognized compensation expense related to the 2021 ESPP was $ 7,529 and will be recognized over the remaining offering period.

15. EMPLOYEE BENEFITS
Defined Contribution Plans
The Company’s 401(k) Savings and Retirement Plan covers any eligible employee on the active payroll of the Company. The Company’s contributions were approximately $ 4,462 , $ 2,858 and $ 2,427 during the years ended December 31, 2025, 2024 and 2023, respectively. The Company’s contributions consist of matching contributions, and non-elective contributions on behalf of employees.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

16. LEASES
The Company has operating and finance leases for properties, vehicles and equipment. The Company’s operating and finance leases have remaining lease terms of less than one year to twenty-five years , some of which include options to extend the lease term, and some of which include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options.
Supplemental balance sheet information related to leases as of December 31, 2025 and 2024 were as follows:

December 31,
Liabilities Presentation 2025 2024
Current:
Operating lease liabilities Other current liabilities $ 10,816   $ 6,170  
Finance lease liabilities Other current liabilities 317   268  
Total lease liabilities, current 11,133   6,438  
Non-current:
Operating lease liabilities Non-current operating lease liabilities 85,191   51,965  
Finance lease liabilities Non-current finance lease liabilities 14,653   14,970  
Total lease liabilities, non-current 99,844   66,935  
Total lease liabilities $ 110,977   $ 73,373  

The Company does not separate non-lease components for the purposes of measuring our lease liabilities and assets. The components of lease expense were as follows during the years ended December 31, 2025, 2024 and 2023:

Years Ended December 31,
2025 2024 2023
Operating lease costs:
Operating lease costs $ 14,158   $ 9,762   $ 7,164  
Amortization of favorable lease 610   1,220   610  
Total operating lease costs: $ 14,768   $ 10,982   $ 7,774  
Finance lease costs:      
Depreciation of right-of-use assets $ 501   $ 591   $ 627  
Interest on lease liabilities 933   949   967  
Total finance lease costs $ 1,434   $ 1,540   $ 1,594  

Cash paid for amounts included in the measurement of lease liabilities:

Years Ended December 31,
2025 2024 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 12,411   $ 8,672   $ 6,581  
Operating cash flows from finance leases 933   949   967  
Finance cash flows from finance leases 268   329   336  
Right-of-use assets obtained in exchange for lease obligations:
Operating leases $ 39,286   $ 2,871   $ 30,396  

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

The weighted average remaining lease term related to operating leases was 8.5 years and 9.0 years as of December 31, 2025 and 2024, respectively. The weighted average discount rate related to operating leases was 6.5 % and 6.4 % as of December 31, 2025 and 2024, respectively. The weighted average remaining lease term related to finance leases was 16.4 years and 17.4 years as of December 31, 2025 and 2024, respectively. The weighted average discount rate related to finance leases was 6.2 % as of December 31, 2025 and 2024.
The following is a schedule of the future minimum operating and finance lease payments by year as of December 31, 2025:

Operating
Leases Finance
Leases
2026 $ 16,712   $ 1,231  
2027 16,811   1,262  
2028 15,834   1,293  
2029 15,206   1,326  
2030 11,881   1,359  
Thereafter 49,965   18,139  
Total lease payments 126,409   24,610  
Less imputed interest ( 30,402 ) ( 9,640 )
Total $ 96,007   $ 14,970  

17. COMMITMENTS AND CONTINGENCIES
Litigation and Claims
The Company is, and from time to time may be, a party to claims and legal proceedings generally incidental to its business that are principally covered under contracts with its customers and insurance policies. In the opinion of management, there are no legal matters or claims likely to have a material adverse effect on the Company’s financial position, results of operations or cash flows.
Other Commitments
The Company has commitments under its lease obligations (Note 16).
Contingencies
The Company records a contingent liability when it is both probable that a loss has been incurred, and the amount can be reasonably estimated. If these estimates and assumptions change or prove to be incorrect, it could have a material impact on the Company’s consolidated financial statements. Contingencies are inherently unpredictable, and the assessments of the value can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions.
On May 23, 2016, the Company entered into a launch services agreement with a customer to provide three commercial dedicated launches which would deliver the customer’s payloads over the period of 2017 through 2021. Per the terms of the agreement, each dedicated launch shall have a firm fixed price below current launch vehicle costs. During the year ended December 31, 2018, the Company determined that it was probable that the costs to provide the services as stipulated by the launch services agreement would exceed the fixed firm price of each launch. As such, the Company recorded a provision for contract loss for these three dedicated launches. During the year ended December 31, 2021, one of the three launches occurred. On April 21, 2021, the launch services agreement was amended, resulting in one additional launch and the potential for price increases on the second and third launches dependent on the customer’s desired payload configuration. On March 29, 2023 and April 29, 2023, the launch services agreement was amended, to change the date by which the launch window election is to occur from March 31, 2023 to on or before May 31, 2023. In June 2023, the launch services agreement was terminated and as a result, the Company released a $ 4,066 provision for contract losses.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

In connection with the acquisition of SolAero Holdings, Inc. in January 2022, the Company assumed a contract with a customer to provide solar panel module at a fixed price. The Company determined that it was probable that the costs to complete the solar panel modules as stipulated by the contract would exceed the fixed firm price of the solar panel modules. As such, the Company recorded a provision for contract loss for this contract, of which $ 9,446 was recorded to other current liabilities in order to recognize the contract at fair value at acquisition.
The provision for contract losses outstanding as of December 31, 2025, which primarily is related to the solar panel module agreement, was $ 4,999 included in other current liabilities in the Company’s consolidated balance sheets.

18. INCOME TAXES
The components of the pretax loss for the years ended December 31, 2025, 2024 and 2023 were as follows:

Years Ended December 31,
2025 2024 2023
Domestic $ ( 346,045 ) $ ( 257,752 ) $ ( 205,334 )
Foreign 120,148   68,341   26,413  
Loss before provision for income taxes $ ( 225,897 ) $ ( 189,411 ) $ ( 178,921 )

The (benefit) provision for income taxes for the years ended December 31, 2025, 2024 and 2023 were as follows:

Years Ended December 31,
2025 2024 2023
Current:
Federal $ —   $ —   $ —  
State 4   14   ( 18 )
Foreign 2,714   ( 299 ) 3,270  
Total current provision 2,718   ( 285 ) 3,252  
Deferred:
Federal ( 27,825 ) 166   114  
State ( 4,291 ) 280   452  
Foreign 1,710   603   ( 168 )
Total deferred provision ( 30,406 ) 1,049   398  
Total:
Federal ( 27,825 ) 166   114  
State ( 4,287 ) 294   434  
Foreign 4,424   304   3,102  
(Benefit) provision for income taxes $ ( 27,688 ) $ 764   $ 3,650  

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

The following is a reconciliation of the U.S. federal statutory federal income tax rate to our effective tax rate after adoption of ASU 2023-09:
Year Ended December 31, 2025
Amount Percent
U.S. federal statutory income tax rate $ ( 47,438 ) 21.0 %
State and local income taxes, net of federal income tax effect (1)
( 3,387 ) 1.5 %
Foreign tax effects
New Zealand
Statutory tax rate difference between New Zealand and United States 7,340   ( 3.2 %)
Nontaxable research and development tax incentive ( 3,620 ) 1.6 %
Stock-based payment awards ( 21,733 ) 9.6 %
Other ( 36 ) — %
Other foreign jurisdictions 210   ( 0.1 %)
Effect of changes in tax laws or rates enacted in the current period —   — %
Effect of cross-border tax laws
Global intangible low-taxed income 2,964   ( 1.3 %)
Other 360   ( 0.2 %)
Tax credits —   — %
Changes in valuation allowances 63,389   ( 28.1 %)
Nontaxable or nondeductible items
Stock-based payment awards ( 30,856 ) 13.7 %
Executive compensation (2)
3,178   ( 1.4 %)
Other 37   — %
Changes in unrecognized tax benefits —   — %
Other adjustments 1,904   ( 0.8 %)
Effective tax rate $ ( 27,688 ) 12.3 %

___________________________________________________
(1) The state and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include California.
(2) Excess tax benefits on share-based payments exclude amounts associated with awards subject to the limitations imposed by Section 162(m) of the Internal Revenue Code.
The following is a reconciliation of the U.S. federal statutory federal income tax rate to our effective tax rate (in percentages):
Years Ended December 31,
2024 2023
Federal statutory rate 21.0 % 21.0 %
Adjustments for tax effects of:
State taxes, net of federal benefit 6.0 % 3.2 %

Permanent differences and other ( 2.6 ) % 0.4   %
Uncertain tax positions 1.0   % ( 0.7 %)

Stock-based compensation 6.7 % ( 0.5 %)
Other adjustments to deferred taxes 0.1 % 1.7 %
Increase in valuation allowance ( 32.6 ) % ( 27.1 ) %
Provision for income taxes ( 0.4 ) % ( 2.0 %)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

The significant components of the Company’s deferred tax assets and liabilities as of December 31, 2025 and 2024 were as follows :

December 31,
2025 2024
Deferred tax assets:
Accrued expenses $ 3,741   $ 2,751  
Inventories 3,253   2,612  
Deferred revenue 40,635   13,681  
Lease liability 26,185   19,181  
Stock compensation 2,190   2,662  
Interest expense 5,886   3,798  
Net operating losses 210,532   129,601  
Tax credits 7,437   4,768  
Reserves 1,389   1,893  
Capitalized research 82,234   81,261  
Other 1,212   2,364  
Total deferred tax assets 384,694   264,572  
Valuation allowance ( 304,106 ) ( 236,113 )
Total deferred tax assets, net 80,588   28,459  
Deferred tax liabilities:
Right of use asset ( 24,876 ) ( 17,929 )
Depreciation and amortization ( 55,059 ) ( 8,411 )

Total deferred tax liabilities ( 79,935 ) ( 26,340 )
Net deferred tax assets $ 653   $ 2,119  

A valuation allowance is recognized against deferred tax assets if it is more-likely-than-not that the deferred tax asset will not be realized. Because of the Company’s recent history of operating losses in the U.S., we have recorded a full valuation allowance against our U.S. deferred tax assets. As of December 31, 2025 and 2024, we recorded valuation allowances of $ 304,106 and $ 236,113 , respectively. In 2025, the net increase in our valuation allowance primarily resulted from losses from operations, partially offset by the release of the valuation allowance related to the deferred tax liabilities generated from the GEOST acquisition.
The One Big Beautiful Bill Act (OBBB), enacted on July 4, 2025, restores or makes permanent certain expiring business tax provisions from the Tax Cuts and Jobs Act of 2017. Among these changes, the OBBB reinstated the immediate expensing of domestic research and experimental (R&E) costs; however, R&E expenditures attributable to foreign research will continue to be capitalized and amortized over 15 years. Due to the full valuation allowance against our U.S. deferred tax assets, the impact of this legislative change is immaterial to our financial statements.
The reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits for the years ended December 31, 2025 and 2024 is as follows:

  2025 2024
Balance at beginning of year $ 939   $ 4,887  

Decrease related to prior year tax positions —   ( 1,974 )

Settlements —   ( 1,974 )
Balance at end of year $ 939   $ 939  

As of December 31, 2025 and 2024, the Company has unrecognized tax benefits totaling $ 140 and $ 140 , respectively, which, if recognized, would impact the effective tax rate in future periods.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

The Company recognizes interest and penalties related to uncertain tax positions as a component of the income tax provision. As of December 31, 2025 and 2024, there were no accrued interest and penalties.
Due to net operating loss (“NOL”) carryforwards, the U.S. federal and state returns are open to examination by the Internal Revenue Service and state jurisdictions for all years beginning with the year ended March 31, 2016. Our foreign subsidiaries are generally subject to examination within four years from the end of the tax year during which the tax return was filed. The years subject to audit may be extended if the entity substantially understates corporate income tax. The Company is not currently under examination by the IRS, foreign or state and local tax authorities.
At December 31, 2025 and 2024, the Company had federal NOL carryforwards of $ 840,916 and $ 492,496 , respectively, which is comprised of definite and indefinite NOLs. The Company had definite federal NOL carryforwards of $ 57,135 as of December 31, 2025 and 2024, which begin to expire in varying amounts beginning in 2034. Federal NOLs generated after 2017 of $ 783,781 and $ 435,361 as of December 31, 2025 and 2024, respectively will carryforward indefinitely and are available to offset up to 80 % of future taxable income each year. The Company also had state NOL carryforwards of $ 549,464 and $ 428,696 as of December 31, 2025 and 2024, respectively, available to reduce future taxable income, if any. If not realized, the state NOLs will begin to expire in varying amounts beginning in 2035.
Utilization of the net operating loss carryforwards may become subject to annual limitations due to ownership changes that could occur in the future as provided by Section 382 of the Internal Revenue Code of 1986, as amended, as well as similar state and foreign provisions. These ownership changes may limit the amount of the net operating loss and tax credit carryforwards that can be utilized annually to offset future taxable income.
As of December 31, 2025 and 2024, we have undistributed earnings of our foreign subsidiaries of $ 64,552 and $ 43,266 , respectively, which we have indefinitely reinvested and for which we have not recognized deferred taxes. The amount of unrecognized deferred taxes associated with these unremitted earnings would not be significant at December 31, 2025 and 2024.
The income taxes paid by jurisdiction or the year ended December 31, 2025 consisted of the following:

Jurisdiction Year Ended December 31, 2025
Federal $ —  
State —  
Foreign 854
Canada
756
New Zealand
91
Other
7
Total $ 854  

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

19. NET LOSS PER SHARE
Common Stock
The holder of each share of common stock has the right to one vote for each share and is entitled to notice of any stockholders’ meeting and to vote upon certain events.
Preferred Stock
The holder of the Preferred Stock has similar rights and characteristics to common stock and for the purposes of the calculation of earnings per share, the Preferred Stock is treated as common stock.
Earnings Per Share Calculation
Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during each period.
Diluted net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of common and dilutive common equivalent shares outstanding for the period using the treasury-stock method and the if-converted method, whichever is more dilutive. Potentially dilutive shares are comprised of common stock warrants, restricted stock units, stock options and shares underlying our convertible senior notes. For the years ended December 31, 2025, 2024 and 2023, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss and potentially dilutive shares being anti-dilutive.
The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders of the Company for the years ended December 31, 2025, 2024 and 2023:

Years Ended December 31,
2025 2024 2023
Numerator
Net loss attributable to common stockholders-basic and diluted $ ( 198,209 ) $ ( 190,175 ) $ ( 182,571 )
Denominator
Weighted average common shares outstanding-basic and diluted 530,664,781 495,929,861 481,768,060
Net loss per share attributable to common stockholders-basic and diluted $ ( 0.37 ) $ ( 0.38 ) $ ( 0.38 )

The following equity shares were excluded from the calculation of diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive for the years ended December 31, 2025, 2024 and 2023:

December 31,
2025 2024 2023
Stock options and restricted stock units 17,409,519 28,913,838 26,889,125
Common stock warrants — — 728,835
Shares underlying our convertible senior notes 30,368,547 69,261,530 —

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

20. SEGMENTS
The Company’s CODM reviews financial information presented based on a management approach for the purposes of making operating decisions, assessing financial performance and allocating resources. The CODM uses gross profit as the measure of segment profit or loss to assess performance and allocate resources. The Company manages its business primarily based upon two operating segments, launch services and space systems. Each of these operating segments represents a reportable segment. Launch Services provides launch and launch related services to customers on a dedicated mission or ride share basis. Space systems is predominately comprised of spacecraft components and spacecraft manufacturing. Although some of the Company’s contracts with customers contain elements of space systems and launch services, each reporting segment is managed separately to better align with customer’s needs and the Company’s growth plans. The accounting policies of the various segments are the same as those described in Note 2. For contracts with customers that contain both space systems and launch services elements, revenues for each reporting segment are generally allocated based upon the overall costs incurred for each of the reporting segments in comparison to total overall costs of the contract. The following table shows information by reportable segment for the years ended December 31, 2025, 2024 and 2023:

Years Ended December 31,
2025 2024 2023
Launch
Services Space
Systems Launch
Services Space
Systems Launch
Services Space
Systems
Revenues $ 199,042   $ 402,757   $ 125,376   $ 310,838   $ 71,894   $ 172,698  
Cost of revenues 117,772   276,846   90,786   229,279   63,827   129,356  
Gross profit $ 81,270   $ 125,911   $ 34,590   $ 81,559   $ 8,067   $ 43,342  

The following table shows information by reportable segment by products and services for the years ended December 31, 2025, 2024 and 2023:

Years Ended December 31,
2025 2024 2023
Launch
Services Space
Systems Launch
Services Space
Systems Launch
Services Space
Systems
Products:
Revenues $ —   $ 371,617   $ —   $ 289,851   $ —   $ 156,560  
Cost of revenues —   252,848   —   213,835   —   115,342  
Gross profit $ —   $ 118,769   $ —   $ 76,016   $ —   $ 41,218  

Services:
Revenues $ 199,042   $ 31,140   $ 125,376   $ 20,987   $ 71,894   $ 16,138  
Cost of revenues 117,772   23,998   90,786   15,444   63,827   14,014  
Gross profit $ 81,270   $ 7,142   $ 34,590   $ 5,543   $ 8,067   $ 2,124  

Management does not regularly review either reporting segment’s total assets or operating expenses. This is because in general, the Company’s long-lived assets, facilities, and equipment are shared by each reporting segment.

21. CONCENTRATION OF CREDIT RISK, SIGNIFICANT CUSTOMERS AND GEOGRAPHIC INFORMATION
Concentration of Credit Risk and Significant Customers
The Company is subject to concentration of credit risk with respect to its cash, cash equivalents and accounts receivable. The Company maintains bank accounts in the United States, New Zealand and Canada and attempts to minimize by maintaining its cash, cash equivalents with major high credit quality financial institutions. From time to time cash balances held may exceed limits federally insured by the Federal Deposit Insurance Corporation. The Company has not experienced losses in such accounts and believes it is not exposed to any significant credit risk associated with these accounts.
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ROCKET LAB CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

The services provided by Rocket Lab are to U.S. Government and commercial customers. The Company has a significant concentration of credit risk associated with its accounts receivables that is solely based on the good faith and credit of the U.S. Government. We extend differing levels of credit to commercial customers, do not require collateral deposits, and, when necessary, maintain reserves for potential credit losses based upon the expected collectability of accounts receivable. We manage credit risk related to our customers by following credit approval processes, establishing credit limits, performing periodic evaluations of credit worthiness and applying other credit risk monitoring procedures.
As of December 31, 2025 and 2024, the Company’s customers that accounted for 10% or more of the total accounts receivable, net, were as follows:

December 31,
2025 2024
Lockheed Martin Corporation 16 % 15 %
Dynetics Inc. * 15 %
Commercial customer 10 % *

* Accounts receivable, net was less than 10%.
For the years ended December 31, 2025, 2024 and 2023, the Company’s customers that accounted for 10% or more of the total revenue were as follows:

December 31,
2025 2024 2023
Government Customer 28 % 11 % *
MDA Corporation * 23 % 13 %
Northrop Grumman Space Systems * * 13 %

* Revenue was less than 10%.
Geographic Information
The Company’s consolidated revenues by geographic area based on customer billing location are as follows for the years ended December 31, 2025, 2024 and 2023:

Years Ended December 31,
2025 2024 2023
Amount % of Total
Revenues Amount % of Total
Revenues Amount % of Total
Revenues
United States $ 475,394   79 % $ 268,326   61 % $ 184,748   76 %
Canada 20,166   3 % 104,388   24 % 36,116   15 %
Japan 65,638   11 % 30,684   7 % 10,457   4 %
Rest of world 40,601   7 % 32,816   8 % 13,271   5 %
Total $ 601,799   100 % $ 436,214   100 % $ 244,592   100 %

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ROCKET LAB CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)

Long-lived assets, which consists of property, plant and equipment, net, leased right-of-use assets, intangible assets, net and goodwill, by geographic area are as follows as of December 31, 2025 and 2024:

December 31,
2025 2024
Amount % of Long-
Lived Assets Amount % of Long-
Lived Assets
United States $ 803,652   94   % $ 346,383   88   %
New Zealand 46,750   5   % 42,090   11   %
Canada 3,833   1   % 4,082   1   %
Total $ 854,235   100   % $ 392,555   100   %

22. RELATED PARTY TRANSACTIONS
On January 7, 2025, the Preferred Stock Exchange was consummated and the Company filed the Certificate of Designation with the Secretary of State of the State of Delaware, which became effective upon filing. At the Closing, the Company issued 50,951,250 shares of Preferred Stock to the Trust. On June 17, 2025, the Trust converted 5,000,000 shares of the Preferred Stock to common stock on a one-for-one basis in accordance with the Certificate of Designation. See Note 13 for additional information on the Preferred Stock Exchange.
As of December 31, 2025 and 2024, there are no amounts due to or from related parties.

23. SUBSEQUENT EVENTS
Notes Conversion
Subsequent to December 31, 2025 and through February 20, 2026, the Company received conversion notices for $ 117,341 aggregate principal amount of Notes. These conversions resulted in the issuance of 22,893,559 shares of common stock in accordance with the terms of the Indenture governing the Notes.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Rocket Lab Corporation

Date: February 26, 2026
By: /s/ Peter Beck
Peter Beck
President, Chief Executive Officer and Chairman

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated.

Name Position Date

/s/ Peter Beck President, Chief Executive Officer and Chairman February 26, 2026
Peter Beck (Principal Executive Officer)

/s/ Adam Spice Chief Financial Officer February 26, 2026
Adam Spice (Principal Financial Officer and Principal Accounting Officer)

/s/ Nina Armagno Director February 26, 2026
Nina Armagno

/s/ Edward Frank Director February 26, 2026
Edward Frank

/s/ Jon Olson Director February 26, 2026
Jon Olson

/s/ Kenneth Possenriede Director February 26, 2026
Kenneth Possenriede

/s/ Merline Saintil Director February 26, 2026
Merline Saintil

/s/ Alex Slusky Director February 26, 2026
Alex Slusky