Rocket Lab and The Trade Desk Post Third-Quarter Results

Rocket Lab and The Trade Desk posted third-quarter results after Monday’s close, prompting renewed market interest in two heavily beaten-down equities.

Rocket Lab shares closed at $58.86 on Monday, November 9, sitting roughly 61% below their May 27 record peak of $150.23. The Trade Desk finished the same trading session at $14.93, trading approximately 87% lower than its last price of 2024. Market reaction to the quarterly releases diverged immediately following the bell. Rocket Lab shares dipped in after-hours trading, while The Trade Desk shares spiked before shedding most of those initial gains.

Rocket Lab reported record third-quarter revenue of $268 million, marking a 73% increase year over year that accelerated from 62% growth in the second quarter. The space company’s backlog of signed work climbed 52% from the end of June to reach $3.57 billion.

That backlog value stands at roughly four times the company’s total intake over the past four quarters. Rocket Lab also secured more than $515 million in new contracts for Neutron, its larger reusable rocket currently in development, bringing total booked missions for the vehicle to 16 before its maiden flight.

Adjusted EBITDA losses landed at $18.0 million for the quarter, improving upon the $26.3 million loss recorded in the same period last year. Management previously guided for losses between $17 million and $23 million. While the latest figure exceeded the $8.8 million loss posted in the second quarter, corporate leadership projects the fourth-quarter adjusted EBITDA loss will narrow to a range between $14 million and $20 million.

Rocket Lab closed September holding roughly $4.4 billion in cash, though the majority of those funds are designated for the pending acquisition of Iridium Communications, a purchase funded through newly issued shares.

Rocket Lab faces a milestone in 2027 with the inaugural launch of the Neutron rocket. The company pushed the debut back to 2027 in October after discovering voids inside a propellant tank dome. CEO Sir Peter Beck stated that a clean replacement dome has since been manufactured, with hydrostatic and cryogenic testing still ahead.

CFO Adam Spice stated on the earnings call that adjusted EBITDA should turn positive within approximately six months of a successful first flight. Evaluated with preferred shares that convert to common stock, Rocket Lab carries a valuation of roughly $40 billion, or about 45 times its trailing four-quarter sales, down significantly from a multiple exceeding 140 times sales during its May peak.

The Trade Desk reported third-quarter revenue of $736 million, representing a 0.5% decline year over year. Despite the contraction, the figure surpassed management’s August forecast of at least $650 million, which had implied a drop of approximately 12%.

Guidance for the fourth quarter points to revenue of at least $755 million, which would sit about 11% below the $847 million generated in the same period of the previous year. Growth has slowed steadily across 2026, dropping from a 12% increase in the first quarter to 3% in the second quarter before turning negative.

We are still operating below the level of growth we expect from ourselves, CEO Jeff Green said in the earnings release.

The third-quarter revenue total included a $15 million contribution from a strategic partner that the ad tech firm does not expect to recur. Free cash flow reached approximately $565 million across the first three quarters of 2026, marking a 13% increase year over year. The company finished September with zero debt on its balance sheet.

Against a market capitalization of roughly $7 billion, the valuation sits at approximately eight times trailing free cash flow. The board expanded its share repurchase authorization by $731 million, leaving a total of $1 billion available for buybacks, which represents about 14% of the company’s total market value.

The Trade Desk must deliver a quarter of positive revenue growth in 2027 to clear its next major hurdle. Achieving that milestone in the first quarter would require beating the $689 million generated in the opening quarter of the prior year.

Both companies carry specific execution risks that warrant conservative positioning. Another delay to the Neutron program could weigh heavily on Rocket Lab shares, while The Trade Desk must demonstrate that existing clients will reverse spending cuts documented in its recent regulatory filings.