Free cash flow remains deeply negative at -$77.4 million in 2026Q1, reflecting the substantial capital intensity required for Neutron development and inventory accumulation.
| Cash from Operations | -161.63M | -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 % | -2651.13% | -238.56% | 50.55% | 7.2% | -48.4% | -158.64% | -28.47% | - |
| Net Income | -182.62M | -198.21M | -190.18M | -182.57M | -135.94M | -117.32M | -55.01M | -30.36M |
| Depreciation & Amortization | 50.22M | 43.94M | 33.66M | 29.74M | 29.95M | 10.85M | 9.34M | 4.87M |
| Stock-Based Compensation | 51.87M | 71.1M | 56.82M | 53.46M | 55.65M | 32.56M | 4.22M | 3.93M |
| Deferred Taxes | -28.93M | -30.67M | 599K | 708K | -576K | -9.98M | -713K | 4.78M |
| Other Non-Cash Items | 21.64M | 7.1M | 4.42M | 7.08M | -7.93M | 19.5M | 5.62M | 797K |
| Working Capital Changes | -73.81M | -58.78M | 45.79M | -7.29M | -47.69M | -7.4M | 8.78M | -5.62M |
| Change in Receivables | -57.93M | 2.96M | -51.59M | -2.05M | -9.43M | -5.97M | 4.5M | 1.73M |
| Change in Inventory | -58.15M | -39.88M | -12.4M | -15.56M | -25.96M | -12.07M | -11.26M | -10.43M |
| Change in Payables | -6.09M | 10.22M | 24.8M | 15.59M | -2.13M | -4.52M | -1.6M | 0 |
| Cash from Investing | -354.52M | -347.4M | -98.33M | 12.02M | -346.08M | -92.13M | -37.33M | -24.32M |
| Capital Expenditures | -154.67M | -156.28M | -67.09M | -54.71M | -42.41M | -25.7M | -25.12M | -24.32M |
| CapEx % of Revenue | 22.76% | 25.97% | 15.38% | 22.37% | 20.1% | 41.29% | 71.45% | 50.24% |
| Acquisitions | -139.62M | -132.44M | 12.54M | -18.97M | -65.82M | -66.44M | -12.21M | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 1.94M | 2.64M | 2.9M | 3.66M | 0 | 0 | 0 | 0 |
| Cash from Financing | 1.42B | 1.07B | 256.68M | 7.37M | 2.04M | 799.94M | 21.48M | -83K |
| Debt Issued (Net) | -81.34M | -61.75M | 302.95M | 2.09M | -271K | 98.89M | 0 | 0 |
| Equity Issued (Net) | 801.31M | 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 | 699.09M | -113.49M | -46.27M | 5.28M | 2.31M | 731.4M | 978K | -83K |
| Net Change in Cash | 902.13M | 558.24M | 108.87M | -79.44M | -446.2M | 638.14M | -43.76M | -45.7M |
| Free Cash Flow | -316.3M | -321.81M | -115.98M | -153.57M | -148.95M | -97.49M | -52.88M | -45.92M |
| FCF Margin % | -46.54% | -53.47% | -26.59% | -62.79% | -70.59% | -156.64% | -150.39% | -94.88% |
| FCF Growth % | -78.58% | -177.46% | 24.48% | -3.1% | -52.78% | -84.37% | -15.15% | - |
| FCF per Share | -0.52 | -0.61 | -0.23 | -0.32 | -0.32 | -0.22 | -0.12 | -0.11 |
| FCF Conversion (FCF/Net Income) | 1.73x | 0.84x | 0.26x | 0.54x | 0.78x | 0.61x | 0.50x | 0.71x |
| Interest Paid | 2.72M | 0 | 16.29M | 15.55M | 10.75M | 3.99M | 0 | 0 |
| Taxes Paid | 214K | 0 | 269K | 769K | 2.67M | 1.84M | 0 | 0 |
Neutron development capital intensity
According to the latest quarterly filings, Rocket Lab's operating cash flow consistently trails net income, with an OCF/NI ratio of 1.12 in 2026Q1, suggesting that non-cash charges and working capital volatility continue to obscure the underlying cash-generating capacity of the core aerospace business operations.
The persistent gap between net income and operating cash flow indicates that the company's accounting earnings are heavily influenced by non-cash items, likely including significant stock-based compensation and depreciation. Investors should monitor whether this divergence narrows as the Space Systems segment matures or if it remains a structural feature of the company's high-growth, R&D-heavy business model.
As reported in recent financial statements, the company's free cash flow remains deeply negative, reaching -$77.4 million in 2026Q1, which highlights the substantial cash burn required to sustain both the Electron launch cadence and the ongoing development of the next-generation Neutron launch vehicle platform.
The negative FCF margin of -38.6% underscores the company's current reliance on external capital to fund its ambitious infrastructure expansion. This trajectory suggests that until the Neutron vehicle reaches commercial viability, the firm will likely continue to experience significant cash outflows that outpace its current revenue generation capabilities.
Based on reported figures, capital expenditures have remained elevated, peaking at $49.7 million in 2025Q4, which reflects the intensive investment in manufacturing facilities and specialized aerospace tooling necessary to support the company's long-term strategic shift toward medium-lift launch capabilities and expanded satellite component production.
The high CapEx-to-revenue ratio, which reached 27.6% in late 2025, indicates that the company is in a heavy asset-building phase. This level of spending warrants further investigation into whether these investments will yield the expected manufacturing efficiencies or if they represent a permanent increase in the company's capital intensity.
Analysis of recent cash flow statements reveals significant fluctuations in working capital, including a $51.8 million outflow in 2026Q1, which appears to be driven by the timing of milestone-based contract payments and the accumulation of inventory required for upcoming satellite constellation and launch mission deliveries.
The volatility in working capital suggests that the company's cash position is highly sensitive to the timing of government contract milestones and supply chain cycles. Investors should monitor these swings closely, as they may indicate potential delays in project execution or shifts in the company's ability to collect cash from its primary defense and aerospace customers.
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.