Rocket Lab could benefit significantly from its pending acquisition of Iridium Communications after the satellite company reported strong third-quarter results. Iridium’s performance exceeded analyst expectations, strengthening the outlook for the combined company to become profitable and generate positive free cash flow as early as 2027.
Iridium reported its Q3 2026 earnings on October 20, and Rocket Lab’s stock has risen 4.5% since the announcement. Investors are factoring Iridium’s results into Rocket Lab’s outlook as the $8 billion deal progresses.
Analysts forecast that the combined company could generate around $300 million in positive free cash flow next year. Rocket Lab would still have a high forward price-to-free-cash-flow ratio. However, Iridium’s better-than-expected results provide a stronger foundation for growth and profitability following the merger.