Is RKLB a good stock to buy? We came across a bullish thesis on Rocket Lab Corporation on M. V. Cunha’s Substack. In this article, we will summarize the bulls’ thesis on RKLB. Rocket Lab Corporation’s share was trading at $68.41 as of March 13th.
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Rocket Lab Corporation, a space company, provides launch services and space systems solutions in the United States, Canada, Japan, and internationally. RKLB continues to demonstrate strong operational execution and strategic positioning, reinforcing its status as a leading vertically integrated space company. In Q4 2025, the company reported revenue of $179.7 million, up 35.7% year-over-year and 15.8% sequentially, driven by a 79% increase in Launch Services revenue and a nearly 30% expansion in Space Systems, reflecting robust demand for Electron, HASTE, and national security spacecraft.
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Full-year 2025 revenue reached $601.8 million, with GAAP and non-GAAP gross margins expanding to 34.4% and 39.7% respectively, supported by improved fixed-cost absorption, operational leverage, and favorable mix dynamics. Rocket Lab’s backlog hit a record ~$1.85 billion, with 37% expected to convert into revenue within 12 months, anchored by a historic $816 million SDA Tranche III award, highlighting its growing role as a prime contractor in U.S. national security programs.
Electron and HASTE launches continue at unprecedented cadence, with rockets rolling out every 11–13 days, strengthening schedule reliability and reinforcing strategic defense relationships. Despite a Stage 1 tank issue delaying Neutron’s first launch to Q4 2026, management emphasized that the problem was isolated to testing, with automated production reducing future risk and cost, and the overall design remains sound. Vertical integration through strategic acquisitions, including OSI and PCL, has enhanced optical payload and precision manufacturing capabilities, while pending expansion with Mynaric could accelerate entry into optical inter-satellite communications.
With a strengthened cash position of $1.1 billion, significant debt reduction, and robust multi-launch customer agreements, Rocket Lab is well-positioned for both organic and inorganic growth. The combination of record launch cadence, expanding national security contracts, and the upcoming Neutron program provides a compelling bullish investment case, offering meaningful upside as the company scales its end-to-end space capabilities and further consolidates its leadership in small and medium-lift orbital launches.
Previously, we covered a bullish thesis on Rocket Lab USA, Inc. (RKLB) by Steve Wagner in May 2025, which highlighted strong operational execution, accelerating Electron launch cadence, a growing Space Systems segment, and early progress on the Neutron program. RKLB’s stock price has appreciated by approximately 233.54% since our coverage. M. V. Cunha shares a similar view but emphasizes record Q4 revenue, backlog growth to $1.85 billion, margin expansion, and strategic acquisitions that strengthen vertical integration, further reinforcing RKLB’s long-term growth and leadership in small and medium-lift orbital launches.
Rocket Lab Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held RKLB at the end of the fourth quarter which was 34 in the previous quarter. While we acknowledge the risk and potential of RKLB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RKLB and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
