Core Viewpoint - Intuitive Machines has announced the acquisition of Lanteris for $800 million, which is expected to significantly enhance its revenue and market position in the space industry [2][6][12] Acquisition Details - Intuitive Machines will pay $800 million for Lanteris, with $450 million in cash and $350 million in stock, resulting in approximately 30% dilution for existing shareholders [6][7] - The acquisition is expected to close in Q1 2026 [12] Financial Implications - Intuitive Machines generated $226 million in revenue over the last 12 months, and the addition of Lanteris is projected to increase total revenue to over $850 million annually, implying Lanteris contributes at least $625 million in revenue [8][10] - The price-to-sales (P/S) ratio for Intuitive Machines will decrease from 7.5 to 2 after the acquisition, indicating a favorable valuation for a space stock [9][10] Strategic Benefits - The acquisition is positioned to transform Intuitive Machines from a "lunar company" to a "multi-domain space prime," potentially opening avenues for lucrative contracts in missile defense and high-profile projects like Artemis and Mars missions [11][12]

Core Viewpoint - Intuitive Machines, a lunar landing and exploration vehicle developer, has faced challenges since its public debut but may present a contrarian investment opportunity at current depressed stock levels [1] Company Overview - Intuitive Machines went public in February 2023 through a SPAC merger, initially seeing its stock price rise to a high of $81.99 before falling to $9 [1] - The company primarily generates revenue from long-term contracts with NASA, having completed two lunar landings, Odysseus and Athena [2][3] Recent Developments - Despite technical issues during landings, NASA has deepened its relationship with Intuitive through new contracts, including a $4.82 billion NSNS contract [3][4] - Intuitive is expanding its business model to include ride-sharing services for payload delivery to the moon and plans to acquire Lanteris Space Systems for $800 million to enhance revenue streams [4] Financial Performance - From 2021 to 2024, Intuitive's revenue is projected to grow at a CAGR of 46%, increasing from $73 million to $228 million, although it remains unprofitable on a GAAP basis [5][6] - Analysts expect revenue growth to continue at a CAGR of 25% from 2024 to 2027, reaching $446 million, with adjusted EBITDA turning positive by 2026 [7] Market Position and Future Outlook - The global space economy is expected to grow from $630 billion in 2023 to $1.8 trillion by 2035, positioning Intuitive as a potential leader in this expanding market [11] - If Intuitive can achieve a revenue CAGR of 20% from 2024 to 2035, its market cap could increase over sevenfold to $8.45 billion [12] - The company aims to become a vertically integrated space services provider, enhancing its operational capabilities and financial stability [9][10]

Core Insights - Intuitive Machines Inc. is transitioning from a lunar lander startup to a multi-domain space company, indicated by its stock nearing a Golden Cross, a bullish signal in technical analysis [1][5] - The company has secured a dedicated bay at Texas A&M's upcoming Space Institute, a $200 million facility designed to simulate lunar conditions [2] - Intuitive Machines plans to utilize this facility to test its Moon RACER lunar terrain vehicle, leveraging 16 years of lunar data for enhanced development [3] Strategic Developments - The company announced an $800 million acquisition of Lanteris Space Systems, marking a significant shift in its operational identity [3][4] - This acquisition positions Intuitive Machines as a contractor for both lunar missions and commercial/military satellite operations, expanding its market reach [4] - The revenue forecast for the company is projected to grow from $228 million to $850 million, reflecting its expanding business model [5]

Financial Performance - Total revenues for the three months ended September 30, 2025, were $52,437,000, a decrease of 10.5% compared to $58,478,000 for the same period in 2024[18] - Service revenue for the nine months ended September 30, 2025, was $163,824,000, down from $173,338,000 in the same period of 2024, reflecting a decline of 5.5%[18] - Operating loss for the three months ended September 30, 2025, was $15,419,000, compared to a loss of $13,724,000 for the same period in 2024, indicating a worsening of 12.4%[18] - Net loss attributable to Class A common shareholders for the three months ended September 30, 2025, was $7,000,000, compared to a loss of $55,543,000 in the same period in 2024[18] - The company reported a net loss of $9,960,000 for the three months ended September 30, 2025, compared to a net loss of $80,411,000 for the same period in 2024, showing a significant improvement[18] - As of September 30, 2025, the net loss attributable to the Company was $6,842,000, compared to a net loss of $43,419,000 for the same period in the previous year[30] - Net cash used in operating activities for the three months ended September 30, 2024, was $7.023 million, while for the nine months it was $55.622 million[37] - The Company reported a significant increase in trade accounts receivable, netting $21.299 million for the three months ended September 30, 2024[37] - 2025 third quarter, net loss was $9,960,000, compared to 2024's $80,411,000, significantly reduced[153] Assets and Liabilities - Cash and cash equivalents increased to $621,975,000 as of September 30, 2025, from $207,607,000 as of December 31, 2024, representing a growth of 199.5%[16] - Total assets as of September 30, 2025, were $753,530,000, up from $355,404,000 as of December 31, 2024, reflecting an increase of 112.2%[16] - Total liabilities increased to $509,701,000 as of September 30, 2025, compared to $351,483,000 as of December 31, 2024, marking a rise of 45%[16] - The total shareholders' deficit increased to $404,174,000 as of September 30, 2025, from $370,667,000 at the end of the previous quarter[30] Shareholder Equity and Stock Transactions - The weighted average shares outstanding for basic and diluted shares increased to 117,815,856 for the three months ended September 30, 2025, compared to 67,072,014 for the same period in 2024[18] - The balance of Class A common stock increased to 120,074,013 shares as of September 30, 2025, from 101,859,000 shares at the end of 2024[30] - The Company issued 15,358,229 Class A common shares for warrants exercised, resulting in an increase of $176,554,000 in paid-in capital[30] - The Company repurchased 20,700 shares of Class A common stock, impacting the treasury stock by the same amount[30] - The issuance of Class C common stock related to earn-out awards amounted to 7,500,000 shares, increasing the paid-in capital by $167,525,000[30] - The Company issued 4,705,883 shares of Class A Common Stock and warrants in a private placement transaction, generating gross proceeds of $20.0 million before transaction costs[117] Acquisitions and Growth Strategy - The company has made acquisitions as part of its growth strategy, which may disrupt operations and impact financial results[13] - The Company plans to acquire Lanteris Space Holdings LLC for $800 million, consisting of $450 million in cash and $350 million in Class A Common Stock[64] - The acquisition of KinetX, Inc. was completed for approximately $31.1 million, including $16.1 million in cash and shares valued at $15.0 million[185] Revenue Composition and Contracts - Fixed price contracts accounted for 58% of total revenue for the three months ended September 30, 2025, compared to 39% in 2024, indicating a significant shift in revenue composition[72] - Contract liabilities totaled $67.8 million as of September 30, 2025, down from $79.5 million at the end of 2024, reflecting a reduction in deferred revenue and contract loss provisions[76] - The aggregate amount of remaining performance obligations was $119.3 million as of September 30, 2025, with expectations to recognize 10-15% of this amount in the last quarter of 2025[80] - The Company recognized grant revenue of $1.5 million during the three months ended September 30, 2025, related to a $10 million grant from the Texas Space Commission[82] Research and Development - Research and development costs for Q3 2025 were $4.0 million, up from $0.3 million in Q3 2024, indicating a substantial increase in investment in innovation[181] Debt and Financing Activities - The Company issued $345.0 million aggregate principal amount of 2.500% convertible senior notes due 2030, with net proceeds of $334.6 million after expenses[62] - The Company entered into a loan and security agreement providing for a secured revolving credit facility of up to $40.0 million, which remains unborrowed as of September 30, 2025[63] - The Company entered into a loan agreement with Stifel Bank for a secured revolving credit facility of up to $40.0 million, maturing on April 30, 2027, with no outstanding debt as of September 30, 2025[101] Legal and Compliance - The Company was in compliance with all debt covenant requirements related to the Convertible Notes and the Stifel Loan Agreement as of September 30, 2025[98] - As of September 30, 2025, legal liabilities related to lawsuits were approximately $2,100,000[158] Taxation - As of September 30, 2025, the Company recognized a U.S. federal and state income tax expense of $5 thousand, with effective tax rates of (0.05)% and (0.01)% for the three and nine months ended September 30, 2025[108] - The Company entered into a tax receivable agreement (TRA) requiring it to pay 85% of cash tax savings to TRA Holders, with management applying a full valuation allowance to deferred tax assets as of September 30, 2025[109][110]

Core Insights - Wall Street anticipates a year-over-year decline in earnings for Intuitive Machines, Inc. despite higher revenues in the upcoming earnings report for the quarter ended September 2025 [1] - The stock price may react positively if the actual results exceed expectations, while a miss could lead to a decline [2] Financial Expectations - The consensus estimate indicates a quarterly loss of $0.04 per share, reflecting a significant year-over-year change of -300% [3] - Expected revenues are projected at $62.41 million, representing a 6.7% increase from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 18.68% higher in the last 30 days, indicating a reassessment by analysts [4] - It is important to note that aggregate changes may not represent the direction of revisions by individual analysts [4] Earnings Prediction Model - The Zacks Earnings ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, providing insights into potential earnings surprises [7][8] - A positive Earnings ESP reading suggests a likely deviation from the consensus estimate, particularly indicating a potential earnings beat [9] Predictive Power of Earnings ESP - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10] - Research indicates that stocks with this combination achieve a positive surprise nearly 70% of the time, enhancing the predictive power of Earnings ESP [10]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $52.4 million, primarily driven by OMS, CLIPS, and NS and S [14] - Gross margin improved to $5.7 million, reflecting a continued focus on cost and execution of key programs [14] - Net loss for the quarter was $10 million, with adjusted EBITDA at negative $13.2 million, showing an improvement of $12.2 million compared to Q2 2025 [14] - Backlog at the end of Q3 was $235.9 million, with expectations to recognize approximately 20% in 2025 [15][16] Business Line Data and Key Metrics Changes - The acquisition of Lanterra Space Systems is expected to enhance Intuitive Machines' capabilities in satellite production and space infrastructure [6][12] - Lanterra has developed over 300 spacecraft, maintaining a 99.99% on-orbit availability, which is crucial for national security and commercial missions [9][10] Market Data and Key Metrics Changes - Lanterra's business breakdown is approximately 25% defense, 25% civil, and 50% commercial, with expectations for the defense portion to increase due to new awards [32] - The acquisition positions Intuitive Machines to address growing demands in secure communications and space domain awareness, particularly in national security markets [7][11] Company Strategy and Development Direction - The acquisition aims to transform Intuitive Machines into a vertically integrated space prime provider, enhancing its ability to serve national security, civil, and commercial customers [6][12] - The company plans to leverage Lanterra's production scale and reliability to expand its Lunar Data Relay constellation and commercialize NASA's Tracking and Data Relay satellite system [12][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing near-term awards despite uncertainties related to the government shutdown, expecting Q4 revenue to align with Q3 [17] - The combined company is projected to have over $850 million in revenue and positive adjusted EBITDA post-acquisition [19] Other Important Information - The acquisition is valued at $800 million, funded through $450 million in cash and $350 million in Intuitive Machines Class A common stock [6][18] - The transaction is expected to close in Q1 of the following year, subject to regulatory approvals [18] Q&A Session Summary Question: What changes has Advent made within Lanterra to improve the margin profile of their manufacturing? - Management noted that Lanterra has made positive changes and efficiencies since going private, focusing on the 300 series satellite for national security applications [23] Question: Should we frame the strategy as gaining more manufacturing capability and driving margins with service revenues post-launch? - Yes, the services model is a higher margin business, and the reliability of Lanterra's satellites will support Intuitive Machines' data networks [25][26] Question: What is the growth profile of Lanterra going forward? - The combination of Intuitive Machines and Lanterra is expected to unlock new markets and diverse revenue streams, particularly in national security [30][31] Question: Can you break down Lanterra's backlog by customer exposure? - Lanterra's backlog is approximately 25% defense, 25% civil, and 50% commercial, with expectations for the defense portion to increase [32] Question: What is the regulatory risk on closing the deal? - The acquisition will undergo a standard antitrust review, which is expected to be routine [64] Question: Will the acquisition change the timing of deployment for the data relay satellites? - There is potential to accelerate the deployment of the lunar constellation due to increased manufacturing capacity from Lanterra [70][71] Question: Is there any recurring revenue or service revenue in Lanterra's assets? - Currently, Lanterra's revenue is primarily product-based, but Intuitive Machines plans to introduce a higher margin service model [83]

Acquisition Overview - Intuitive Machines is acquiring Lanteris Space Systems in a transaction valued at approximately $800 million[20] - The transaction involves $450 million in cash and $350 million in Class A common stock[20] - The combined entity has a TTM (Trailing Twelve Months) revenue exceeding $850 million[20] - The combined backlog is approximately $920 million[20] Financial Highlights - Intuitive Machines has approximately $630 million in revenue (TTM Q3 2025)[16] - The company reports double-digit adjusted EBITDA margins (TTM Q3 2025)[16] - The company's backlog is approximately $685 million (as of September 30, 2025)[16] Strategic Positioning - The acquisition accelerates Intuitive Machines' three pillars: Delivery, Data, and Infrastructure from Earth to LEO/MEO/GEO to Moon, Mars[11] - The company has launched over 300 spacecraft[16] - The company has over 100 satellites in orbit today with 99.99% on-orbit availability[16] Market Opportunities - The company is targeting a $4.8 billion NASA program for lunar communications[22] - The company is targeting a $4.6 billion NASA contract to deliver and operate a lunar rover[22]

Core Insights - Intuitive Machines, a lunar lander manufacturer, announced its acquisition of Lanteris Space Systems, previously known as Maxar Space Systems, from Advent International [1] Company Summary - The acquisition aims to enhance Intuitive Machines' capabilities in spacecraft manufacturing, aligning with its strategic goals in the space industry [1] - Lanteris Space Systems is recognized for its expertise in spacecraft technology, which is expected to complement Intuitive Machines' existing operations [1] Industry Context - The deal reflects a growing trend in the aerospace sector where companies are consolidating to strengthen their technological capabilities and market positions [1] - This acquisition may signal increased competition in the lunar exploration market as companies seek to expand their service offerings and technological advancements [1]

Acquisition Details - The acquisition involves Intuitive Machines, Inc. purchasing 100% of the membership interests of Lanteris Space Holdings LLC from Vantor Holdings Inc. for a consideration to be determined[10]. - The transaction is expected to enhance Intuitive Machines' capabilities in mission systems engineering and spacecraft manufacturing, targeting both commercial and government customers[24]. - The closing of the transaction is subject to various conditions precedent, including regulatory approvals and compliance with legal requirements[10]. - The parties have agreed to enter into a transitional services agreement to ensure a smooth integration post-acquisition[10]. - The total consideration for the acquisition will be adjusted based on post-closing financial performance metrics[3]. - The Cash Consideration Amount is set at $450,000,000, plus any cash for fractional shares as per Section 3.3[27]. - The total consideration for the acquisition includes a cash consideration amount plus $350 million[140]. - The cash portion adjustment amount is capped at $50 million if the calculated amount exceeds this threshold[141]. - The closing date is expected to occur no later than five business days after all conditions are satisfied, but not before February 1, 2026[138]. Financial Considerations - Closing Cash on Hand shall not exceed $7,500,000 in total[30]. - Closing Working Capital will be calculated as consolidated current assets minus consolidated current liabilities, excluding certain specified accounts[33]. - The Company will not include intercompany receivables or payables in the Closing Working Capital calculation[34]. - The Closing Working Capital Adjustment will be $0.00 if it falls within specified collars[35]. - The Equity Transaction Bonus Value is defined as 43.75% of the dollar value of Company Transaction Bonuses for Continuing Employees[49]. - The transaction expenses include an audit expense of $1 million for preparing the audited financial statements[126]. - The transaction tax deductions will include the deductible portion of all transaction expenses[127]. - Within 90 days post-Closing, Purchaser must deliver a Closing Statement detailing Closing Working Capital Adjustment, Closing Cash on Hand, Closing Indebtedness, and Closing Transaction Expenses[148]. - The Closing Statement will be final unless Seller disputes it within 45 days, detailing the disagreement and dollar amounts involved[149]. - If the Closing Working Capital Adjustment exceeds the Estimated amount, the Cash Consideration Amount will increase accordingly[152]. - Any adjustments resulting in a reduction of the Cash Consideration Amount must be paid by Seller to Purchaser within 5 business days after final determination[153]. - Fractional shares of Class A Common Stock will not be issued; instead, cash equivalent will be provided for any fractional shares[154]. - Adjustments to Stock Consideration will be made for any changes in outstanding shares due to stock splits or similar transactions[156]. Legal and Compliance - The agreement includes provisions for handling tax matters and potential indemnification for liabilities arising from the transaction[12]. - The agreement outlines specific representations and warranties from both the seller and purchaser to protect against potential liabilities[4]. - The Company is subject to various Environmental Laws concerning pollution and worker health[48]. - Each Group Company holds all necessary permits and licenses for lawful business conduct and has been in compliance with all applicable laws for the past five years[171]. - All material Taxes owed by the Group Companies have been timely paid, and all required Tax Returns are true and complete[172]. - The Group Companies are not bound by any Material Contracts requiring aggregate payments exceeding $1,000,000 in any fiscal year[192]. - No Government Contract has been terminated for default in the past thirty-six months[197]. - The Group Companies have complied with all requirements in their Government Contracts to protect their rights to intellectual property over the past twelve months[198]. - No Group Company has been debarred or suspended from participation in contracts with any Governmental Authority in the past two years[199]. - The Group Companies have maintained compliance with U.S. national industrial security requirements over the past three years[200]. Operational and Market Impact - The transaction is anticipated to strengthen Intuitive Machines' market position in the space exploration sector[24]. - The acquisition is part of a broader strategy for market expansion and technological advancement in the aerospace industry[24]. Company Financials - The Company’s Financial Statements include unaudited consolidated balance sheets as of December 31, 2024, and December 31, 2023[57]. - Financial Statements have been prepared in accordance with GAAP and fairly present the financial condition and results of operations of the Company and its Subsidiaries[167]. - Since December 31, 2024, there has been no Material Adverse Effect on the Group Companies[170]. - The Group Companies have good and marketable title to all material tangible personal property reflected on the Financial Statements[184]. - The Group Companies exclusively own all rights to the Company Intellectual Property, which is valid and enforceable[185]. - The Group Companies have taken commercially reasonable measures to maintain the confidentiality of material trade secrets included in the Company Intellectual Property[187]. - All material IT Systems used in the Business are sufficient, operate as intended, and are free from significant defects[188]. - There are no material claims or assessments of Taxes asserted against any Group Company that remain unpaid or unresolved[175]. - Each Group Company has materially complied with all Privacy Laws and has used commercially reasonable safeguards to protect Personal Information over the past three years[191]. - No Group Company has experienced material security breaches involving Personal Information in the past three years[191]. Definitions and Terms - "Income Tax Liability Amount" encompasses unpaid income taxes for pre-closing tax periods ending after December 31, 2024[69]. - "Indebtedness" includes obligations related to borrowed money, leases, and deferred purchase price obligations, among others[71]. - "Indemnified Taxes" refers to income tax liabilities related to the Seller Group for taxable periods prior to the closing date[73]. - "Material Adverse Effect" excludes changes in general business conditions, acts of God, and failures to meet financial projections[83]. - The "Lower Working Capital Collar" is defined as $(100,000,000), indicating a negative threshold[83]. - "Intercompany Arrangements" involve contracts and indebtedness between Group Companies and the Seller Parent or its subsidiaries[77]. - "Insurance Policies" are defined in Section 4.18, indicating the company's coverage and risk management strategies[75]. - "Intellectual Property" includes patents, trademarks, copyrights, and trade secrets, essential for the company's competitive advantage[76]. - "Leased Real Property" refers to real estate leased by Group Companies, impacting operational capabilities[81]. - The Parent Stock Price is $12.34[89]. - The Spanish Offset Amount is $3,300,000[117]. - The upper working capital collar is set at $(70 million)[130]. - The working capital target is $(90 million)[131].

Core Insights - The acquisition of Lanteris Space Systems positions Intuitive Machines as a next-generation space prime, enhancing its capabilities across multiple domains in the space industry [2][3] - The combined entity is projected to have revenues exceeding $850 million, with a positive Adjusted EBITDA and a backlog of $920 million as of September 30, 2025 [2][18] - The transaction is valued at $800 million, consisting of $450 million in cash and $350 million in Intuitive Machines Class A common stock, expected to close in Q1 2026 [2][3] Financial Performance - For the twelve months ended September 30, 2025, Lanteris reported approximately $630 million in revenue with double-digit Adjusted EBITDA margins [18] - Intuitive Machines recognized revenue of $52.4 million in Q3 2025, with a net loss of $10.0 million and an adjusted EBITDA of ($13.2) million [10][18] - The company ended Q3 2025 with a backlog of $235.9 million and a cash balance of $622.0 million after issuing $345 million in convertible notes [10][18] Strategic Positioning - The acquisition allows Intuitive Machines to expand its data services from lunar and Earth-based operations into Low Earth Orbit (LEO), Medium Earth Orbit (MEO), Geostationary Orbit (GEO), and beyond [1][3] - The company aims to strengthen its position in future National Security Space and Civil Space programs, including initiatives like Artemis and the Space Development Agency's Layered Architecture [1][3] - The strategic move is seen as transformative, aligning with the company's vision to integrate space infrastructure services across various domains [4][3] Market Outlook - Intuitive Machines anticipates that Q4 revenue will align with Q3 figures, influenced by uncertainties related to government shutdowns [7] - The company plans to provide a new outlook for the combined entity in early 2026, reflecting its growth trajectory post-acquisition [7][8] - The focus on rapid innovation and precision spacecraft production is expected to meet the increasing demand for high-reliability space infrastructure and services [8]