Financial Performance - Q1 2025 revenue reached $62.5 million, a 14% increase compared to Q4 2024[82, 86] - Gross margin expanded to 11%, amounting to $6.7 million in Q1 2025[82] - The company generated $19.4 million in positive operating cash flow in Q1, resulting in a positive free cash flow of $13.3 million after $6.1 million in capital expenditures[84] - The company ended Q1 with a cash balance of $373.3 million[85] - Backlog as of March 31, 2025, was $272.3 million, a 22% year-over-year increase[94, 95] Key Projects and Milestones - The company executed the first two milestones for NASA's NSNS contract for $9 million and received an additional $18 million for the next two milestones[15] - The company received a $10 million grant from the Texas Space Commission to develop an Earth reentry vehicle and microgravity research lab[21] - Phase two activities for the Orbital Transfer Vehicle (OTV) are underway under a letter contract with a government customer, valued at approximately $11 million[30] - IM-2 mission successfully landed on the south pole region of the Moon[17] Outlook - The company anticipates full-year 2025 revenue to be between $250 million and $300 million[104] - The company expects to achieve positive run-rate Adjusted EBITDA by the end of 2025 and be Adjusted EBITDA positive in 2026[104, 105]

[Financial and Operational Highlights](index=1&type=section&id=Highlights) Intuitive Machines achieved a second lunar landing and key contract milestones in Q1 2025, reporting **$62.5 million revenue** and **$13.3 million positive free cash flow** - The company is leveraging its proven performance to expand into adjacent markets like National Security Space and other non-lunar domains, positioning itself as a broader space economy infrastructure and data services provider[3](index=3&type=chunk)[4](index=4&type=chunk) - Key Operational Achievements in Q1 2025: * Landed its second mission on the Moon's south pole region * Completed the preliminary design review for the Lunar Terrain Vehicle Services (LTVS) * Executed the first two milestones for NASA's Near Space Network Services (NSNS) contract, earning **$9 million** * Received a **$10 million** grant from the Texas Space Commission to develop an Earth reentry vehicle * Performed phase one of the Air Force's JETSON contract for low-power nuclear electric propulsion[5](index=5&type=chunk) Q1 2025 Financial Highlights | Metric | Value | Note | | :--- | :--- | :--- | | Revenue | $62.5 million | Up 14% vs. Q4 2024 | | Gross Margin | 11% ($6.7 million) | Third consecutive quarter of positive gross margin | | Operating Cash Flow | $19.4 million | - | | Free Cash Flow | $13.3 million | - | | Cash at End of Quarter | $373.3 million | Following warrant redemption process | [2025 Outlook](index=1&type=section&id=2025%20Outlook) The company projects full-year 2025 revenue between **$250 million and $300 million**, targeting positive adjusted EBITDA by late 2025 and for 2026 Full-Year 2025 Guidance | Metric | Outlook | | :--- | :--- | | Revenue | $250 - $300 million | | Adjusted EBITDA | Positive run-rate by end of 2025 | | 2026 Adjusted EBITDA | Positive | [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, covering Balance Sheet, Operations, and Cash Flows [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to **$500.0 million**, driven by cash, while total liabilities decreased to **$172.4 million** Condensed Consolidated Balance Sheets (In thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $431,312 | $293,161 | | **Total assets** | **$500,014** | **$355,404** | | **Total current liabilities** | $98,148 | $98,831 | | **Total liabilities** | **$172,400** | **$351,483** | | **Total shareholders' deficit** | ($135,223) | ($1,008,034) | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue was **$62.5 million**, resulting in a **$10.1 million operating loss**, but achieved **$1.0 million net income** due to warrant fair value changes Condensed Consolidated Statements of Operations (In thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Revenue** | **$62,524** | **$73,219** | | Total operating expenses | $72,601 | $75,994 | | **Operating loss** | **($10,077)** | **($2,775)** | | Total other income (expense), net | $11,052 | ($115,256) | | **Net income (loss)** | **$975** | **($118,031)** | | Net loss attributable to Class A common shareholders | ($11,543) | ($97,957) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, the company generated **$19.4 million** cash from operations and **$152.3 million** from financing, increasing cash by **$165.6 million** Condensed Consolidated Statements of Cash Flows (In thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | **$19,419** | **($6,442)** | | Net cash used in investing activities | ($6,122) | ($1,588) | | **Net cash provided by financing activities** | **$152,349** | **$60,754** | | Net increase in cash, cash equivalents and restricted cash | $165,646 | $52,724 | | **Cash and cash equivalents at end of the period** | **$373,253** | **$55,242** | [Non-GAAP Financial Measures and Other Metrics](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Other%20Metrics) This section presents key non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow, and backlog, for performance and future revenue insights - The company uses non-GAAP measures like Adjusted EBITDA and Free Cash Flow, as well as contracted backlog, to help investors understand operating trends, liquidity, and potential future sales[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) [Adjusted EBITDA Reconciliation](index=8&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 was a **$6.6 million loss**, compared to **$1.6 million positive** in Q1 2024, after adjusting for non-operating items Adjusted EBITDA Reconciliation (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income (loss) | $975 | ($118,031) | | Adjustments | ($7,585) | $119,596 | | **Adjusted EBITDA** | **($6,610)** | **$1,565** | [Free Cash Flow Reconciliation](index=8&type=section&id=Free%20Cash%20Flow) The company generated **$13.3 million positive Free Cash Flow** in Q1 2025, a significant improvement from an **$8.0 million outflow** in Q1 2024 Free Cash Flow Reconciliation (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $19,419 | ($6,442) | | Purchases of property and equipment | ($6,122) | ($1,588) | | **Free cash flow** | **$13,297** | **($8,030)** | [Backlog](index=8&type=section&id=Backlog) Contracted backlog was **$272.3 million** as of March 31, 2025, a **$56.0 million decrease** from year-end 2024, reflecting revenue recognized and new awards Backlog (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Backlog | $272,336 | $328,345 | - The backlog decreased by **$56.0 million** primarily due to recognizing **$62.5 million** in revenue from existing contracts, which was slightly offset by **$6.5 million** in new contract awards[27](index=27&type=chunk) [Company Information and Disclosures](index=3&type=section&id=Company%20Information%20and%20Disclosures) This section provides a corporate overview, contact information, and legal disclaimers, including forward-looking statement warnings - Intuitive Machines is a diversified space technology, infrastructure, and services company focused on disrupting lunar access economics through three pillars: Delivery Services, Data Transmission Services, and Infrastructure as a Service[12](index=12&type=chunk) - The press release contains forward-looking statements regarding mission timing, contract bids, revenue expectations, and business strategy, which are subject to numerous risks and uncertainties, and actual results may differ materially[13](index=13&type=chunk)[14](index=14&type=chunk) - The company will host a conference call and webcast on May 13, 2025, at 8:30 am Eastern Time to discuss the results, with a replay available on its investor relations website[7](index=7&type=chunk)[8](index=8&type=chunk)

Core Insights - Intuitive Machines, Inc. reported financial results for Q1 2025, highlighting a revenue increase and positive cash flow, while also emphasizing strategic expansion into adjacent markets [1][4][11]. Financial Performance - The company achieved revenue of $62.5 million in Q1 2025, a 14% increase compared to Q4 2024 [4]. - Gross margin expanded to 11%, or $6.7 million, marking the third consecutive quarter of positive gross margin [4]. - Positive operating cash flow of $19.4 million was generated in Q1, resulting in free cash flow of $13.3 million [4][28]. Strategic Developments - Intuitive Machines is diversifying into adjacent markets such as National Security Space, leveraging its existing capabilities [3][4]. - The company completed a preliminary design review for Lunar Terrain Vehicle Services (LTVS) and was awarded a NASA contract to support lunar surface logistics [4][12]. Outlook - The full-year 2025 revenue outlook is projected between $250 million and $300 million, with expectations for positive adjusted EBITDA by the end of 2025 [11][12]. - The company anticipates recognizing success payments from the IM-2 lunar mission in Q2 2025 [4]. Backlog and Contracts - As of March 31, 2025, the contracted backlog was $272.3 million, a decrease of $56 million from December 31, 2024, primarily due to performance on existing contracts [32].

Core Viewpoint - Intuitive Machines, Inc. (LUNR) is expected to report a decline in first-quarter revenues while showing improvement in its bottom line compared to the previous year, despite recent setbacks in its lunar missions [2][5][6]. Financial Performance - The Zacks Consensus Estimate for first-quarter revenues is $59.4 million, reflecting an 18.7% decline from the same quarter last year [2]. - The consensus estimate for the bottom line is a loss of $0.10 per share, which is an improvement from a loss of $0.21 per share reported in the prior-year quarter [2]. - The bottom-line estimate has deteriorated from a loss of $0.05 per share in the past 60 days [2]. Earnings Surprise History - LUNR has a mixed earnings surprise history, outperforming the Zacks Consensus Estimate in three out of the last four quarters, with an average earnings surprise of 69.92% [2][3]. Recent Developments - The company has experienced a setback with its second lunar mission, IM-2, which tipped over upon landing, likely impacting first-quarter results negatively [6]. - Increased selling, general, and administrative expenses due to public company costs and employee benefits are expected to negatively affect earnings performance [7]. - A recent contract awarded by NASA for lunar logistics is anticipated to boost the company's order book and backlog count [8]. Stock Performance - LUNR's shares have increased by 52.3% over the past year, outperforming the Zacks Aerospace-Defense industry's growth of 7.3% and the broader sector's growth of 11.8% [9]. - The stock's forward 12-month price-to-sales (P/S) ratio is 5.24X, significantly higher than the industry average of 2.02X, indicating a premium valuation [11]. Industry Context - The market for space exploration is experiencing solid growth, driven by investments from private companies and governments, which is beneficial for companies like LUNR [15]. - LUNR is developing its largest lander, Nova-M, which is expected to generate substantial revenues upon launch [15]. Investment Considerations - Despite the company's strong stock performance, there are concerns regarding its ability to meet earnings expectations for the first quarter, given the unfavorable earnings ESP and recent downward revisions in estimates [17].

Company Overview - Intuitive Machines has made significant progress since its February 2023 IPO, securing four NASA contracts for lunar payload deliveries, completing two missions with partial success, indicating a design flaw in the Nova-C lander [2][3] - The company generates $77 million and up from NASA for each landing attempt, with annual revenue reaching $228 million last year, tripling from 2023, and projected to grow to $280 million this year (23% growth) and $387 million next year (38% growth) [3][4] Financial Performance - Despite revenue growth, Intuitive Machines is not yet profitable, recording over $343 million in losses last year, primarily due to stock warrant retirement costs; analysts expect losses to decrease to less than $35 million this year, with potential for a small GAAP profit by 2026 [5] - The company has a $4.8 billion, 10-year contract with NASA to build and operate a Near Space Network, valued at approximately $480 million per year, which could significantly boost revenue beyond current forecasts [9] Future Outlook - NASA's current contract schedule allows for about one mission per year, limiting short-term growth until design issues are resolved; however, the NSN contract could sustain growth for Intuitive Machines [7][9] - Analysts predict that annual revenue could average at least twice the current amount over the next five years, with potential revenue reaching $625 million and a net profit margin of 18% [12] Valuation - Intuitive Machines stock is currently valued at around $1 billion, translating to over 4 times trailing sales, which is near the upper limit for valuations of unprofitable space stocks [13]

Core Insights - The space industry is experiencing accelerated growth due to rising geopolitical tensions, rapid digitization, and increasing government-private partnerships, with Intuitive Machines (LUNR) and Rocket Lab (RKLB) emerging as key players [1][2] Financials and Growth Outlook - Rocket Lab ended 2024 with cash and cash equivalents of $419 million, current debt of $12 million, and long-term debt of $404 million, indicating a moderate solvency position [3] - The company secured over $450 million in new launch and space systems contracts in the previous year, including a significant $1.45 billion contract for a hypersonic test flight for the Department of Defense [4] - Additionally, Rocket Lab won a $5.6 billion award from the U.S. Space Force for national security missions, enhancing its revenue growth prospects [5] - Intuitive Machines concluded 2024 with cash and cash equivalents of $210 million and no debt, reflecting a solid solvency position [6] - The company is developing its largest lander, the Nova-M, expected to generate substantial revenues, and has a backlog of $328.3 million, a 22% year-over-year increase [7] Key Risks - Intuitive Machines faces risks related to its dependence on NASA-funded programs and the success of its lunar missions, which could impact future contract awards [8] - Rocket Lab's high operating expenses from investments in innovations may offset revenue gains, leading to losses [9] - Legal challenges, including a securities class action lawsuit, could affect Rocket Lab's investor confidence and future government contracts [10] Sales Estimates - The Zacks Consensus Estimate for Intuitive Machines' 2025 sales indicates a 19.2% year-over-year increase, while Rocket Lab's estimate suggests a 32.1% increase [11][12] Stock Performance - Over the past three months, Intuitive Machines' stock has decreased by 60.3%, while Rocket Lab's has decreased by 22.9%. However, over the past year, Intuitive Machines' shares surged by 66.7%, compared to Rocket Lab's 481.9% increase [14] Valuation - Intuitive Machines is trading at a forward sales multiple of 4.93X, which is more attractive compared to Rocket Lab's forward earnings sales of 15.18X [15] Return on Invested Capital - Both companies exhibit a negative Return on Invested Capital (ROIC), indicating insufficient profit generation from investments to cover capital costs [19] Conclusion - Both Intuitive Machines and Rocket Lab present opportunities in the evolving space economy, with LUNR's strong backlog and debt-free balance sheet positioning it for long-term growth, while RKLB's diversified business model offers near-term revenue visibility [20] - However, both companies face execution risks and earnings uncertainty, with LUNR's reliance on lunar missions and RKLB's high operating costs and legal issues potentially impacting performance [21][22]

Core Viewpoint - Intuitive Machines, Inc. will release its financial results for Q1 2025 on May 13, 2025, before market opening, followed by a conference call at 8:30 am ET to discuss the results [1]. Company Overview - Intuitive Machines is a diversified space technology, infrastructure, and services company focused on disrupting lunar access economics [3]. - The company successfully soft-landed its Nova-C class lunar lander on the Moon in 2024, marking the return of the United States to the lunar surface for the first time since 1972 [3]. - In 2025, Intuitive Machines returned to the lunar south pole with a second lander [3]. - The company's offerings are structured around three pillars of space commercialization: Delivery Services, Data Transmission Services, and Infrastructure as a Service [3].

Core Insights - Intuitive Machines, Inc. (LUNR) has experienced a significant share price increase of 55.5% over the past year, outperforming the Zacks Aerospace-Defense industry and broader market indices [1][2][3] Company Performance - LUNR's strong performance is attributed to its established position in lunar space products and services, along with increased funding from the U.S. government for space exploration [1][4] - The company has secured multiple contracts, including a study contract from NASA for lunar logistics and additional contracts for Direct-to-Earth services, which have contributed to its growth [5][6] Market Opportunities - The space economy is projected to reach $1.8 trillion by 2035, providing substantial growth opportunities for companies like Intuitive Machines [7] - LUNR is developing its largest lander, Nova-M, which is expected to generate significant revenues upon launch [7] Financial Backlog - Intuitive Machines ended 2024 with a record backlog of $328.3 million, reflecting a 22% year-over-year growth, indicating strong revenue-generation potential [8] Revenue Estimates - The Zacks Consensus Estimate for LUNR's first-quarter 2025 revenues indicates an 18.7% decline year-over-year, while the full-year 2025 estimate shows a 19.2% growth [11] - The company is expected to improve its loss figures in 2025 and 2026, although there are downward revisions in earnings estimates, suggesting some analysts' declining confidence [11][13] Valuation Metrics - LUNR's forward price-to-sales (P/S) ratio is 4.92X, which is higher than the peer group's average of 3.78X, indicating a premium valuation [14] - Comparatively, industry peers TransDigm and Rocket Lab also trade at premium valuations, with P/S ratios of 15.38X and 8.44X, respectively [16]

Core Insights - The Texas Space Commission has awarded Intuitive Machines a grant of up to $10 million to support the development of an Earth reentry vehicle and an orbital fabrication lab for microgravity biomanufacturing [1][2] - The funding aims to reduce risks associated with future lunar sample return missions and is expected to create high-tech jobs and enhance Texas' position in space commercialization [2][5] Company Development - Intuitive Machines initiated the design of an Earth reentry vehicle in 2022, which is intended for missions returning from low Earth orbit, the Moon, or Mars [3] - The company has partnered with Rhodium Scientific to advance commercial microgravity biomanufacturing, which allows for the efficient production of materials and pharmaceuticals in space [3][4] Collaboration and Future Plans - The collaboration with Rhodium Scientific focuses on developing technical approaches for payload integration and safe reentry for lunar and low Earth orbit missions [5] - The 12-month SEARF phase one effort will support the advancement of this collaboration and the development of a full-scale ground prototype [5] Company Background - Intuitive Machines is a diversified space technology company that aims to disrupt lunar access economics and has successfully landed its Nova-C class lunar lander on the Moon in 2024 and again in 2025 [6]

Market Overview - The U.S. stock market has experienced significant volatility in 2025, influenced by President Trump's trade policies, but recent developments indicate that severe tariffs may not be implemented, creating opportunities for investors [1] Innovative Growth Companies - Many tech companies have seen sell-offs due to trade uncertainties, leading to attractive entry points for long-term investors [2] - Companies developing technologies that will define new markets over the next decade are highlighted as potential investment opportunities [11] Advanced Air Mobility - Archer Aviation is focused on developing eVTOL aircraft for urban air taxi services, currently down 36% from its 52-week high, with steady FAA certification progress and strategic partnerships positioning it for growth [4] - Joby Aviation, the leading eVTOL manufacturer, is down 43% from its 52-week high, with advanced flight testing and partnerships with Toyota and Delta expected to drive revenue growth [5] Quantum Computing - D-Wave Quantum offers commercial access to quantum computing and is down 44% from its 52-week high, with early commercial momentum seen as a growth driver [6] - IonQ develops trapped-ion quantum computers and is down 50% from its 52-week high, with technological advancements and partnerships positioning it for future market leadership [7] Space Economy - Rocket Lab USA provides small satellite launch services and is down 40% from its 52-week high, with a strong launch record and diversified offerings in a rapidly growing space economy projected to reach $1 trillion by 2040 [8] - Intuitive Machines, down 68% from its 52-week high, specializes in lunar payload delivery systems, with proven capabilities offering significant upside potential for long-term investors [9] Data Analytics - Palantir Technologies offers data analytics software with a focus on AI-powered solutions, currently down 25% from its 52-week high, and is positioned for substantial growth due to high demand for its services [10] Investment Rationale - The current market conditions present a rare opportunity to invest in companies with meaningful technological validation and operational progress, trading at valuations 25% to 68% below recent highs [12]