RK

Rocket Lab USA, Inc. stock research

Mar 31, 2025

FY2025 Q1

Rocket Lab USA (RKLB) Gross Margin — Quarter Ended Mar 31, 2025

Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit followed a similar pattern, while cost of revenue declined from the prior quarter and rose year-over-year, resulting in a gross margin that improved relative to both periods.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit followed a similar pattern, while cost of revenue declined from the prior quarter and rose year-over-year, resulting in a gross margin that improved relative to both periods.

  • The gross margin improved sequentially and year-over-year, driven by a proportionally larger decline in cost of revenue relative to revenue when compared with the prior quarter, and a proportionally smaller increase in cost of revenue relative to revenue when compared with the same quarter last year.
  • Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, but cost of revenue declined more sharply, leading to a higher gross margin. Compared to the same quarter one year earlier, revenue was higher and gross profit was higher, while cost of revenue increased at a slower pace, resulting in an improved gross margin.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

28.8%

Gross profit

$35.2M

Revenue

$122.6M

Cost of revenue

$87.3M

Quarter-over-quarter change

+0.9 pts

Year-over-year change

+2.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2024$106.3M$27.2M$79.1M25.6%
Sep 30, 2024$104.8M$28.0M$76.8M26.7%
Dec 31, 2024$132.4M$36.8M$95.6M27.8%
Mar 31, 2025$122.6M$35.2M$87.3M28.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2024

+0.9 pts

Year-over-year change

Mar 31, 2024

+2.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improved sequentially and year-over-year, driven by a proportionally larger decline in cost of revenue relative to revenue when compared with the prior quarter, and a proportionally smaller increase in cost of revenue relative to revenue when compared with the same quarter last year.

Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, but cost of revenue declined more sharply, leading to a higher gross margin. Compared to the same quarter one year earlier, revenue was higher and gross profit was higher, while cost of revenue increased at a slower pace, resulting in an improved gross margin.

Monitor the trajectory of cost of revenue relative to revenue, as its rate of change has been the primary factor influencing gross margin movements.