Rocket Lab Corporation RKLB

For RKLB, revenue growth is driven primarily by SG&A investments, with a 1% rise in SG&A yielding a 1.39% increase in revenue, while R&D contributes a smaller 0.57% per 1% spend. This implies SG&A spending provides a higher revenue ROI than R&D within the model, suggesting near-term emphasis on go-to-market efficiency and selling, general, and administrative activities. The model is reasonably accurate (MAPE 1.4%), but a holdout test showed a 5% miss in the latest quarter, predicting $189M versus actual $180M, indicating some quarterly volatility. The outlook remains strong, with a forecasted revenue of $996M for the year, up 65.5% year over year, though investors should monitor changes in spend mix and margin dynamics as growth accelerates.