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Cash generation remains negative, with a free cash flow margin of -58.7% in Q2 2026, as capital expenditures and working capital volatility consume the benefits of revenue growth.
Rocket Lab USA, Inc. (RKLB) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | -249.68M | -165.52M | -48.89M | -98.87M | -106.54M | -71.79M | -27.76M | -21.61M |
| Operating CF Margin % | - | -27.5% | -11.21% | -40.42% | -50.49% | -115.35% | -78.94% | -44.64% |
| Operating CF Growth % | -2951.17% | -238.56% | 50.55% | 7.2% | -48.4% | -158.64% | -28.47% | - |
| Net Income | -165.46M | -198.21M | -190.18M | -182.57M | -135.94M | -117.32M | -55.01M | -30.36M |
| Depreciation & Amortization | 62.4M | 43.94M | 33.66M | 29.74M | 29.95M | 10.85M | 9.34M | 4.87M |
| Stock-Based Compensation | 81.61M | 71.1M | 56.82M | 53.46M | 55.65M | 32.56M | 4.22M | 3.93M |
| Deferred Taxes | -30.71M | -30.67M | 599K | 708K | -576K | -9.98M | -713K | 4.78M |
| Other Non-Cash Items | -137.73M | 7.1M | 4.42M | 7.08M | -7.93M | 19.5M | 5.62M | 797K |
| Working Capital Changes | -59.79M | -58.78M | 45.79M | -7.29M | -47.69M | -7.4M | 8.78M | -5.62M |
| Change in Receivables | -58.54M | 2.96M | -51.59M | -2.05M | -9.43M | -5.97M | 4.5M | 1.73M |
| Change in Inventory | -22.57M | -39.88M | -12.4M | -15.56M | -25.96M | -12.07M | -11.26M | -10.43M |
| Change in Payables | 705K | 10.22M | 24.8M | 15.59M | -2.13M | -4.52M | -1.6M | 0 |
| Cash from Investing | -395.98M | -347.4M | -98.33M | 12.02M | -346.08M | -92.13M | -37.33M | -24.32M |
| Capital Expenditures | -148.68M | -156.28M | -67.09M | -54.71M | -42.41M | -25.7M | -25.12M | -24.32M |
| CapEx % of Revenue | 19.33% | 25.97% | 15.38% | 22.37% | 20.1% | 41.29% | 71.45% | 50.24% |
| Acquisitions | -176.71M | -132.44M | 12.54M | -18.97M | -65.82M | -66.44M | -12.21M | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 2.43M | 2.64M | 2.9M | 3.66M | 0 | 0 | 0 | 0 |
| Cash from Financing | 1.84B | 1.07B | 256.68M | 7.37M | 2.04M | 799.94M | 21.48M | -83K |
| Debt Issued (Net) | -75.21M | -61.75M | 302.95M | 2.09M | -271K | 98.89M | 0 | 0 |
| Equity Issued (Net) | 975.78M | 1.25B | 0 | 0 | 0 | -30.36M | 20.5M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -30.36M | 0 | 0 |
| Other Financing | 936.56M | -113.49M | -46.27M | 5.28M | 2.31M | 731.4M | 978K | -83K |
| Net Change in Cash | 1.19B | 558.24M | 108.87M | -79.44M | -446.2M | 638.14M | -43.76M | -45.7M |
| Free Cash Flow | -398.35M | -321.81M | -115.98M | -153.57M | -148.95M | -97.49M | -52.88M | -45.92M |
| FCF Margin % | -51.79% | -53.47% | -26.59% | -62.79% | -70.59% | -156.64% | -150.39% | -94.88% |
| FCF Growth % | -95.21% | -177.46% | 24.48% | -3.1% | -52.78% | -84.37% | -15.15% | - |
| FCF per Share | -0.63 | -0.61 | -0.23 | -0.32 | -0.32 | -0.22 | -0.12 | -0.11 |
| FCF Conversion (FCF/Net Income) | 2.41x | 0.84x | 0.26x | 0.54x | 0.78x | 0.61x | 0.50x | 0.71x |
| Interest Paid | 15.64M | 24.55M | 16.29M | 15.55M | 10.75M | 3.99M | 0 | 0 |
| Taxes Paid | 681K | 854K | 269K | 769K | 2.67M | 1.84M | 0 | 0 |
Quick answers to the most common questions about buying RKLB stock.
Rocket Lab USA, Inc. (RKLB) generated $-165.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Rocket Lab USA, Inc. (RKLB) reported negative free cash flow of $321.8M in 2025, indicating capital requirements exceeded cash from operations.
Rocket Lab USA, Inc. (RKLB) spent $156.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Neutron development cash burn duration
Metrics are mathematically derived from official filings.
Deepening Losses Mask Cash Conversion Reality
Operating cash flow consistently exceeds net income, with the OCF/NI ratio ranging from 1.12 to 2.26 in recent quarters, suggesting non-cash charges like depreciation and SBC are inflating reported losses relative to actual cash usage, as per the latest SEC filings.
The persistent gap where operating cash flow is less negative than net income is driven by the substantial add-back of non-cash expenses, primarily stock-based compensation and depreciation. However, this dynamic is inverted in Q2 2026, where a $24.6M working capital outflow and $37.0M acquisition caused operating cash flow to be significantly worse than net income, indicating the cash conversion quality is deteriorating as growth accelerates and capital is deployed for inorganic expansion.
FCF Deficit Expands with Strategic Investment
Free cash flow has deteriorated to a -$137.3 million deficit in Q2 2026, representing a -58.7% FCF margin, as heavy capital expenditures and working capital swings consume the benefits of record revenue growth, according to the company's cash flow statement.
The FCF trajectory is sharply negative and worsening, diverging further from the improving revenue growth story. The widening FCF margin deficit from -26.7% a year ago to -58.7% now underscores that the business is burning cash at an accelerating rate to fund the Neutron program and working capital needs. This indicates that reported revenue growth is not yet translating into positive cash generation, and the path to breakeven remains distant.
CapEx Intensity Rises for Growth Platform
Capital expenditures have surged to $49.7 million in Q4 2025 and remain elevated at $26.0 million in Q2 2026, reflecting a capital intensity ratio that has jumped to 11-13% of revenue, as reported in the quarterly financial statements.
The capital expenditure profile has shifted from a maintenance-heavy, lower-intensity model to one dominated by growth investment, primarily for the Neutron vehicle. The volatility in quarterly CapEx, peaking near 30% of revenue, suggests lumpy, project-based spending rather than steady-state maintenance. This elevated capital intensity directly erodes free cash flow and must be monitored for potential cost overruns or delays in the Neutron program, which would extend the period of negative FCF.
Working Capital Swings Amplify Cash Volatility
Working capital changes have been highly volatile, with a -$51.8 million drag in Q1 2026 followed by a $24.6 million benefit in Q2, indicating unpredictable cash timing tied to milestone-based revenue recognition and inventory builds for large contracts, per the cash flow statement.
The erratic pattern of working capital swings—from a $742K outflow to a $51.8M outflow within two quarters—highlights the cash flow unpredictability inherent in project-based aerospace contracts. This volatility suggests that collections and payables management are not smooth and may be tied to specific, large-ticket deliveries. Investors should monitor whether this pattern stabilizes as the Space Systems segment grows, or if it continues to introduce significant noise into quarterly cash flow.
Cash Deployment Prioritizes Growth Over Shareholders
Capital deployment is overwhelmingly focused on organic and inorganic growth, with $37.0 million spent on an acquisition in Q2 2026 and zero capital returned to shareholders via dividends or buybacks, as disclosed in the latest financing activities.
Management is allocating all available capital toward scaling operations and acquiring strategic assets like SolAero, with no funds directed toward shareholder returns. This strategy is consistent with a company in a high-growth investment phase, but it exposes investors to significant execution risk. The acquisition spend reduces the cash runway available for the Neutron program, warranting close monitoring of the $828.6 million cash balance and the rate of future cash consumption.
Cash Flow Statement Obscures True Burn Rate
The reported operating cash flow figures mask the true economic cost of growth, as stock-based compensation of $19.6 million in Q2 2026 is a real cash cost to shareholders via dilution that is added back as a non-cash expense, based on the reconciled cash flow statement.
A key counter-narrative is that the positive adjustments to net income (like SBC) inflate operating cash flow, making the cash burn appear less severe than the underlying economic reality. Furthermore, milestone-based revenue recognition can accelerate cash collection on contracts, creating a temporary positive working capital impact that may not be repeatable. The cash flow statement does not capture the full dilutive cost of SBC or the future capital that may be required if the Neutron program exceeds its budget, representing a hidden risk to long-term value.