NewsSOS
A delay in the launch of Rocket Lab's Neutron rocket would extend the company's period of negative free cash flow by approximately $110 million each quarter.
Management stated on an August 10 call that the window for a launch by the end of 2026 is narrowing, a timeline critical to the stock's current valuation at 52.6 times sales, compared with 3.1 for the S&P 500.
Rocket Lab reported a free cash flow outflow of $110.1 million in the second quarter, a figure management expected to remain elevated in the third quarter.
The company holds roughly $2.4 billion in cash and securities as of the end of the second quarter. At the current burn rate, each quarter of delay would consume less than 5% of that total.
Keep reading