Group 1: Market Overview - The space stock sector received a boost as the broader market rallied following comments from Federal Reserve Chairman Jerome Powell, indicating potential rate cuts ahead [1] - Rocket Lab's stock rose nearly 7% on Friday due to the market rally [2] Group 2: Company Performances - Rocket Lab successfully completed its 70th Electron launch, deploying five satellites to a 655km orbit for a confidential customer [2] - Boeing announced the successful launch of its X-37B Orbital Test Vehicle on its eighth mission [3][4] - Intuitive Machines' shares gained 3% in the recent rally but remain down over 20% since its mid-August offering of $300 million in convertible senior notes [5] - AST SpaceMobile's shares have decreased over 18% in the past 30 days, despite a 3% gain on Friday [6] Group 3: Starlink Operations - Starlink experienced a brief service outage, marking its second outage in two weeks, attributed to a critical failure in internal software systems [7] - The outage occurred shortly after the launch of T-Mobile's Starlink-powered direct-to-cell service [7][8]

Group 1: Rocket Lab (RKLB) - Rocket Lab completed the acquisition of Geost for $275 million, enhancing its position in defense initiatives [2] - The CEO emphasized that the acquisition accelerates the delivery of mission-critical payloads supporting U.S. national security [3] - RKLB stock increased by over 4% following the acquisition announcement [3] Group 2: Intuitive Machines (LUNR) - Intuitive Machines announced a private offering of $300 million in convertible senior notes, leading to a significant drop in stock price [4] - The anticipated net proceeds from the offering are approximately $291.8 million, potentially increasing to $333.5 million if additional notes are purchased [5] - LUNR stock fell more than 8% over the past week and 25% over the past month [5] Group 3: AST SpaceMobile (ASTS) - AST SpaceMobile reported losses of 41 cents per share and revenue of $1.16 million, missing Wall Street estimates [6] - Despite the disappointing results, the company expects significant growth in the second half of the year [6] - ASTS stock was down over 13% in the past month, although it saw a slight increase on the day of the earnings release [7] Group 4: Project Kuiper (AMZN) - Amazon's Project Kuiper successfully launched 24 satellites using a SpaceX Falcon 9 rocket, increasing its constellation to 102 satellites [8][9] - The launch took place at Cape Canaveral Space Force Station in Florida [8]

Core Viewpoint - Intuitive Machines, Inc. has announced the pricing of $300 million in 2.500% convertible senior notes due 2030, increasing from a previously announced size of $250 million, with an option for initial purchasers to buy an additional $45 million [1][2] Use of Proceeds - The net proceeds from the Notes Offering are estimated to be approximately $291.8 million, or $335.5 million if the additional notes option is fully exercised, intended for capped call transactions and general corporate purposes including operations, research and development, and potential acquisitions [2] Additional Details of the Notes - The Notes will be senior, unsecured obligations with an annual interest rate of 2.500%, maturing on October 1, 2030, and interest payable semiannually starting April 1, 2026 [3] Conversion Rights - Noteholders can convert their Notes under specific conditions before July 1, 2030, and at any time thereafter, with an initial conversion rate of 76.2631 shares per $1,000 principal amount, representing a conversion price of approximately $13.1125 per share, a 25% premium over the last reported price of $10.49 [4] Redemption and Repurchase Rights - The Notes are not redeemable before October 6, 2028, and can be redeemed by the company under certain conditions. Noteholders can require the company to repurchase their Notes upon a "fundamental change" at 100% of the principal amount plus accrued interest [5][6][7] Capped Call Transactions - Intuitive Machines has entered into capped call transactions to reduce potential dilution upon conversion of the Notes, with an initial cap price of $20.9800 per share, a 100% premium over the last reported sale price [8] Market Activity Impact - The option counterparties may engage in derivative transactions and purchase shares of Intuitive Machines' stock, which could influence the market price of the stock and the Notes [9][10] Company Overview - Intuitive Machines is focused on space technology and services, having successfully soft-landed lunar landers in 2024 and 2025, and aims to disrupt lunar access economics through its offerings in Delivery Services, Data Transmission Services, and Infrastructure as a Service [13]

Core Viewpoint - Intuitive Machines, Inc. plans to offer $250 million in convertible senior notes due 2030, with an option for an additional $37.5 million, to qualified institutional buyers, aiming to support its operations and potential acquisitions [1][3]. Group 1: Notes Offering Details - The convertible senior notes will be senior, unsecured obligations, accruing interest at an annual rate, payable semiannually starting April 1, 2026, and maturing on October 1, 2030 [2]. - The notes will be convertible into cash, shares of Class A common stock, or a combination thereof, with specific terms to be determined at pricing [2]. Group 2: Use of Proceeds - A portion of the net proceeds from the notes offering will be used for capped call transactions, while the remaining funds will support general corporate purposes, including operations, research and development, and potential acquisitions [3]. - If the option for additional notes is exercised, proceeds will similarly be allocated for capped call transactions and general corporate purposes [3]. Group 3: Capped Call Transactions - Intuitive Machines expects to enter into capped call transactions to reduce potential dilution of its Class A common stock upon conversion of the notes [4]. - These transactions are designed to offset cash payments required in excess of the principal amount of converted notes, subject to a cap [4]. Group 4: Market Impact - The initial purchasers of the notes may engage in derivative transactions or purchase shares of Class A common stock, which could influence the market price of the stock and the notes [5][6]. - Such activities may affect the conversion process and the number of shares received by noteholders upon conversion [6]. Group 5: Company Overview - Intuitive Machines is a diversified space technology company focused on lunar access economics, having successfully landed its Nova-C class lunar lander on the Moon in 2024 and returned in 2025 [10]. - The company operates through three pillars: Delivery Services, Data Transmission Services, and Infrastructure as a Service [10].

Core Viewpoint - NASA is accelerating its lunar nuclear reactor construction plan, aiming to develop a 100-kilowatt fission reactor system for launch by 2030, which is seen as crucial for the Artemis lunar program and a strategic asset in the new space race [1][2]. Group 1: Lunar Nuclear Reactor Development - NASA plans to initiate industry bidding for a 100-kilowatt lunar nuclear fission reactor system, with a target launch by 2030 [1]. - The nuclear reactor is intended to provide a stable energy supply for a lunar base, which is essential for long-term exploration and operations on the Moon and Mars [2][4]. - The reactor's design is expected to utilize uranium fuel and include a multi-layer shielding system to protect astronauts from radiation [4]. Group 2: Challenges and Concerns - Experts express skepticism about the feasibility of deploying a nuclear reactor on the Moon by 2030, citing significant technical and logistical challenges [6]. - Key challenges include ensuring the reactor can operate under extreme lunar conditions, such as temperature fluctuations and low gravity, as well as navigating lengthy approval processes [6]. - The development of materials that can withstand high temperatures and the safe transport of nuclear materials to space are also highlighted as critical hurdles [6]. Group 3: Strategic Implications - The push for a lunar nuclear reactor is partly driven by concerns over the U.S. losing its leadership in space exploration, especially with increasing collaboration between China and Russia on lunar projects [2][3]. - The first country to establish a nuclear reactor on the Moon could potentially claim exclusive rights to certain areas, impacting U.S. interests in lunar exploration [3].

[Part I – Financial Information](index=6&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Presents Intuitive Machines' unaudited condensed consolidated financial statements for Q2 and H1 2025, including balance sheets, income statements, and cash flows [Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$475.6 million** while liabilities decreased to **$184.7 million**, improving the shareholders' deficit Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $344,901 | $207,607 | | Total current assets | $396,753 | $293,161 | | Total assets | $475,639 | $355,404 | | **Liabilities & Equity** | | | | Total current liabilities | $107,295 | $98,831 | | Earn-out liabilities | $0 | $134,156 | | Total liabilities | $184,746 | $351,483 | | Total shareholders' deficit | $(379,123) | $(1,008,034) | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue grew to **$50.3 million**, but a net loss of **$(38.2) million** was reported, while H1 net loss narrowed to **$(37.2) million** Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $50,313 | $41,641 | $112,837 | $114,860 | | Operating loss | $(28,640) | $(27,500) | $(38,717) | $(30,275) | | Net income (loss) | $(38,206) | $16,655 | $(37,231) | $(101,376) | | Net income (loss) per share - basic | $(0.22) | $0.34 | $(0.33) | $(1.73) | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow turned positive at **$0.2 million**, and financing activities provided **$151.3 million**, significantly boosting cash Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $156 | $(37,702) | | Net cash used in investing activities | $(14,176) | $(3,793) | | Net cash provided by financing activities | $151,314 | $70,608 | | **Net increase in cash** | **$137,294** | **$29,113** | [Notes to Financial Statements](index=13&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies, financial results, and significant subsequent events including an acquisition and facility expansions - The company operates as a space technology, infrastructure, and services company focused on establishing cislunar infrastructure through three core pillars: delivery services, data transmission services, and infrastructure as a service[40](index=40&type=chunk) - One major customer, NASA, accounted for **85%** and **81%** of total revenue for the three and six months ended June 30, 2025, respectively[57](index=57&type=chunk) - All **10,000,000** Earn Out Units related to the 2023 Business Combination have vested as of June 30, 2025, eliminating the corresponding earn-out liability from the balance sheet[60](index=60&type=chunk)[61](index=61&type=chunk) - Subsequent to the quarter end, on August 6, 2025, the company entered into an agreement to acquire KinetX, Inc. for an aggregate base consideration of **$30.0 million** in cash and stock[169](index=169&type=chunk) - In July 2025, the company amended its ground lease to expand its Lunar Production and Operations Center (LPOC) with an additional investment of at least **$12.0 million**[170](index=170&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, business model, strategic developments, results of operations, key metrics, and liquidity [Overview](index=36&type=section&id=Overview) The company leads cislunar infrastructure development with successful IM-1 and IM-2 lunar missions as key achievements - The company's IM-1 Nova-C lander became the first U.S. vehicle to softly land on the lunar surface since 1972[176](index=176&type=chunk) - The IM-2 mission landed at the southernmost location of the moon, 5 degrees from the south pole, in March 2025[176](index=176&type=chunk) [Results of Operations](index=43&type=section&id=Results%20of%20Operations) Q2 2025 revenue increased to **$50.3 million**, but operating loss widened, and net loss was **$(38.2) million**, while H1 net loss narrowed Results of Operations Comparison (in thousands) | Metric | Q2 2025 | Q2 2024 | Change | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $50,313 | $41,641 | $8,672 | $112,837 | $114,860 | $(2,023) | | Cost of revenue | $62,156 | $57,692 | $4,464 | $118,003 | $116,891 | $1,112 | | Operating loss | $(28,640) | $(27,500) | $(1,140) | $(38,717) | $(30,275) | $(8,442) | | Net income (loss) | $(38,206) | $16,655 | $(54,861) | $(37,231) | $(101,376) | $64,145 | - The Q2 2025 revenue increase was driven by CLPS missions (+$11.7M), the NSN contract (+$9.5M), and the LTV contract (+$3.9M), partially offset by a decrease in the OMES III contract (-$19.5M) due to project cancellations[227](index=227&type=chunk) [Key Business Metrics and Non-GAAP Financial Measures](index=46&type=section&id=Key%20Business%20Metrics%20and%20Non-GAAP%20Financial%20Measures) Backlog decreased to **$256.9 million**, Adjusted EBITDA remained a loss, and free cash flow improved to an outflow of **$(14.0) million** Backlog (in thousands) | Date | Backlog | | :--- | :--- | | June 30, 2025 | $256,909 | | December 31, 2024 | $328,345 | - The decrease in backlog was primarily due to performance on existing contracts (**$112.8 million**) and mission close-out adjustments (**$8.4 million**), partially offset by **$49.8 million** in new awards[244](index=244&type=chunk) Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $(38,206) | $16,655 | $(37,231) | $(101,376) | | Adjustments | $12,838 | $(3,108) | $12,123 | $77,833 | | **Adjusted EBITDA** | **$(25,368)** | **$13,547** | **$(25,108)** | **$(23,543)** | [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$344.9 million** in cash, bolstered by **$151.3 million** from financing activities - Cash and cash equivalents were **$344.9 million** and working capital was **$289.5 million** as of June 30, 2025[254](index=254&type=chunk) - Net cash provided by financing activities was **$151.3 million** for H1 2025, mainly from **$176.6 million** in proceeds from warrant exercises, offset by a **$20.7 million** share repurchase[261](index=261&type=chunk) - The company has a **$40.0 million** secured revolving credit facility with Stifel Bank, which remained unborrowed as of June 30, 2025[255](index=255&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Intuitive Machines is exempt from providing market risk disclosures - The company is a smaller reporting company and is not required to provide quantitative and qualitative disclosures about market risk[279](index=279&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[280](index=280&type=chunk) - No material changes to internal control over financial reporting occurred during the three months ended June 30, 2025[281](index=281&type=chunk) [Part II – Other Information](index=52&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ongoing legal proceedings, including a breach of contract lawsuit regarding Series A Preferred Stock conversion - The company is defending a breach of contract lawsuit filed by Starlight Strategies IV LLC related to the conversion of Series A Preferred Stock[144](index=144&type=chunk)[282](index=282&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors, but the company will lose its "emerging growth company" and "smaller reporting company" status, increasing compliance costs - The company will no longer qualify as an "emerging growth company" or a "smaller reporting company" as of December 31, 2025[284](index=284&type=chunk) - Losing this status will result in increased compliance requirements, such as auditor attestation of internal controls under Sarbanes-Oxley Section 404(b), and is expected to increase legal and accounting costs[287](index=287&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported during the period - None reported[285](index=285&type=chunk) [Other Information](index=53&type=section&id=Item%205.%20Other%20Information) No other information is reported for this item - None reported[288](index=288&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Quarterly Report, including CEO and CFO certifications and Inline XBRL data files

Financial Highlights - The company reported revenue of $50.3 million in Q2 2025, a 21% year-over-year increase[64,69] - The company's backlog as of June 30, 2025, was $256.9 million, also a 21% year-over-year increase[65,74] - The company ended Q2 with a cash balance of $344.9 million[68,77] - The company's operating loss in Q2 2025 was $28.6 million, and adjusted EBITDA was a loss of $25.4 million[71] - Full-year 2025 revenue is projected to be near the low-end of prior outlook, with additional opportunities in the latter part of the year that supports revenue near the prior mid-point of $275 million[82] Strategic Initiatives - The company was awarded a $9.8 million contract from a national security customer to advance the Orbital Transfer Vehicle[13,43,64] - The company is continuing development of a stealth nuclear-powered satellite for AFRL, with a follow-on contract anticipated later this year[13,44] - The company signed a definitive agreement to acquire KinetX Inc for $30 million to expand capabilities in satellite constellation design and ground operations[13,37] - The company formalized a strategic partnership with Goonhilly Earth Station to explore new global opportunities for ground segment data transmission[13,38] Infrastructure and Missions - The company is expanding its Houston Spaceport headquarters with a new 116,000-square-foot facility and a 16,500-square-foot spacecraft development and production space[24,28,29] - The company is aligning the IM-3 mission with satellite readiness, now targeting the second half of 2026[34]

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) [Company Overview & Business Model](index=1&type=section&id=Company%20Overview%20%26%20Business%20Model) Intuitive Machines is a leading diversified space technology, infrastructure, and services company focused on fundamentally disrupting lunar access economics, having successfully soft-landed lunar landers in 2024 and 2025 - Intuitive Machines is a leading space technology and infrastructure services company[2](index=2&type=chunk) - The company is a diversified space technology, infrastructure, and services company focused on fundamentally disrupting lunar access economics[12](index=12&type=chunk) - Successfully soft-landed Nova-C class lunar landers on the Moon in 2024 and 2025, returning the United States to the lunar surface for the first time since 1972[12](index=12&type=chunk) - Products and services are focused through three pillars of space commercialization: Delivery Services, Data Transmission Services, and Infrastructure as a Service[12](index=12&type=chunk) [CEO Commentary & Strategic Vision](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Vision) CEO Steve Altemus highlighted decisive execution in Q2 2025, including bringing satellite manufacturing in-house and the strategic acquisition of KinetX, with plans for continued opportunistic M&A and internal investments to accelerate growth - Executed decisively in Q2, bringing satellite manufacturing in-house for performance, schedule clarity, and integration[3](index=3&type=chunk) - Moved to acquire KinetX, a company specializing in space navigation and flight dynamics software, crucial for future network operations[3](index=3&type=chunk)[5](index=5&type=chunk) - Will remain opportunistic on strategic M&A and evaluate internal investments to accelerate growth and drive long-term shareholder value[4](index=4&type=chunk) - Intends to remain aggressive in the marketplace, particularly in data services and National Security Space markets[4](index=4&type=chunk) [Second Quarter 2025 Operational & Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Operational%20%26%20Financial%20Highlights) Q2 2025 saw significant strategic moves including the acquisition of KinetX, investment in in-house satellite production, and expansion of production footprint, with revenue growing 21% year-over-year to $50.3 million and the company ending the quarter debt-free with $345 million cash - Signed purchase agreement to acquire KinetX, positioning Intuitive Machines for Earth Orbit, Moon, and Mars constellation management[5](index=5&type=chunk) - Strategically invested in in-house satellite production to support the Near Space Network Services (NSNS) contract, aligning Mission 3 for satellite deployment in H2 2026[5](index=5&type=chunk) - Expanded production footprint at Houston Spaceport by 140,000 square feet for satellite and spacecraft production, testing, and mission operations[5](index=5&type=chunk) Q2 2025 Revenue Performance (in millions of dollars) | Metric | Q2 2025 (Millions) | Q2 Prior Year (Millions) | Change (%) | | :----- | :----------------- | :----------------------- | :--------- | | Revenue | $50.3 | $41.6 | +21% | - Awarded **$9.8 million** for a phase two contract from a National Security customer to advance the Orbital Transfer Vehicle[5](index=5&type=chunk) - Partnered with Space Forge for space-based semiconductor manufacturing and Rhodium Scientific for in-space biopharmaceutical testing, supported by a **$10 million** Texas Space Commission award for the Earth Reentry Program[5](index=5&type=chunk) - Ended Q2 debt-free with **$345 million cash**, indicating continued balance sheet strength and ample liquidity[5](index=5&type=chunk) [Outlook](index=1&type=section&id=Outlook) The company projects full-year 2025 revenue near the low-end of prior outlook, with additional opportunities potentially supporting revenue near the prior mid-point of $275 million, and positive adjusted EBITDA still expected in 2026 - Full-year 2025 revenue is projected to be near the low-end of prior outlook, with additional opportunities potentially supporting revenue near the prior mid-point of **$275 million**[6](index=6&type=chunk) - Continues to expect positive adjusted EBITDA in 2026[6](index=6&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $475.6 million from $355.4 million at December 31, 2024, primarily driven by a significant increase in cash and cash equivalents, while total liabilities decreased substantially due to the elimination of earn-out liabilities and a reduction in warrant liabilities Condensed Consolidated Balance Sheets Highlights (in thousands of dollars) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--------------------------------- | :-------------- | :---------------- | :----- | | Cash and cash equivalents | $344,901 | $207,607 | +$137,294 | | Total current assets | $396,753 | $293,161 | +$103,592 | | Property and equipment, net | $40,607 | $23,364 | +$17,243 | | Total assets | $475,639 | $355,404 | +$120,235 | | Total current liabilities | $107,295 | $98,831 | +$8,464 | | Earn-out liabilities | $0 | $134,156 | -$134,156 | | Warrant liabilities | $38,809 | $68,778 | -$29,969 | | Total liabilities | $184,746 | $351,483 | -$166,737 | | Total shareholders' deficit | $(379,123) | $(1,008,034) | +$628,911 | - Significant increase in cash and cash equivalents, contributing to the overall rise in total assets[17](index=17&type=chunk) - Substantial reduction in total liabilities, primarily driven by the elimination of earn-out liabilities and a decrease in warrant liabilities[17](index=17&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, revenue increased 21% year-over-year to $50.3 million, but the company reported a net loss of $38.2 million, compared to a net income of $16.7 million in Q2 2024, largely influenced by changes in the fair value of warrant liabilities and the absence of earn-out liability changes Condensed Consolidated Statements of Operations Highlights (in thousands of dollars) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Revenue | $50,313 | $41,641 | $112,837 | $114,860 | | Operating loss | $(28,640) | $(27,500) | $(38,717) | $(30,275) | | Change in fair value of earn-out liabilities | $0 | $22,109 | $(33,369) | $(488) | | Change in fair value of warrant liabilities | $(13,033) | $21,009 | $29,969 | $(2,955) | | Net income (loss) | $(38,206) | $16,655 | $(37,231) | $(101,376) | | Net income (loss) attributable to the Company | $(25,181) | $18,671 | $(36,577) | $(78,815) | - Q2 2025 revenue increased by **$8.672 million (20.8%)** year-over-year[19](index=19&type=chunk) - Reported a net loss of **$38.206 million** in Q2 2025, a significant decline from a net income of **$16.655 million** in Q2 2024[19](index=19&type=chunk) - The change in fair value of earn-out liabilities (zero in Q2 2025 vs. **$22.109 million** gain in Q2 2024) and warrant liabilities (loss of **$13.033 million** in Q2 2025 vs. gain of **$21.009 million** in Q2 2024) significantly impacted net income/loss[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was $0.156 million, a substantial improvement from net cash used of $37.702 million in the prior year period, largely due to positive changes in working capital and significantly increased net cash from financing activities due to warrant exercises Condensed Consolidated Statements of Cash Flows Highlights (in thousands of dollars) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by (used in) operating activities | $156 | $(37,702) | | Net cash used in investing activities | $(14,176) | $(3,793) | | Net cash provided by financing activities | $151,314 | $70,608 | | Net increase in cash, cash equivalents and restricted cash | $137,294 | $29,113 | | Cash and cash equivalents at end of the period | $344,901 | $31,631 | - Operating cash flow improved significantly, shifting from **$37.702 million** cash used in H1 2024 to **$0.156 million** cash provided in H1 2025[21](index=21&type=chunk) - Purchases of property and equipment increased to **$14.176 million** in H1 2025, up from **$3.793 million** in H1 2024[21](index=21&type=chunk) - Net cash provided by financing activities more than doubled to **$151.314 million** in H1 2025, primarily driven by **$176.620 million** from warrant exercises[21](index=21&type=chunk) [Non-GAAP Financial Measures & Key Metrics](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Key%20Metrics) [Adjusted EBITDA Reconciliation](index=3&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q2 2025 was a loss of $25.368 million, comparable to Q2 2024, while the six-month period saw an increased loss of $31.978 million compared to $23.543 million in the prior year - Adjusted EBITDA is a key performance measure used by management to assess operating performance, excluding non-operating sources like interest income/expense, share-based compensation, and fair value changes[10](index=10&type=chunk) Adjusted EBITDA (in thousands of dollars) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | $(38,206) | $16,655 | $(37,231) | $(101,376) | | Adjusted EBITDA | $(25,368) | $(25,108) | $(31,978) | $(23,543) | - Q2 2025 Adjusted EBITDA loss remained relatively stable year-over-year[24](index=24&type=chunk) - For the six-month period, Adjusted EBITDA loss increased from **$23.543 million** in 2024 to **$31.978 million** in 2025[24](index=24&type=chunk) [Free Cash Flow Reconciliation](index=3&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free Cash Flow for the six months ended June 30, 2025, improved significantly to a negative $14.020 million, compared to a negative $41.495 million in the prior year period, driven by a positive shift in operating cash flow despite increased capital expenditures - Free cash flow is defined as net cash provided by (used in) operating activities less purchases of property and equipment, serving as a meaningful indicator of liquidity[11](index=11&type=chunk)[25](index=25&type=chunk) Free Cash Flow (in thousands of dollars) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by (used in) operating activities | $156 | $(37,702) | | Purchases of property and equipment | $(14,176) | $(3,793) | | Free cash flow | $(14,020) | $(41,495) | - Free cash flow improved by **$27.475 million** in H1 2025 compared to H1 2024[26](index=26&type=chunk) - Free Cash Flow is a non-GAAP measure with limitations, including potential incomparability to other companies and sensitivity to capital investments and working capital fluctuations[27](index=27&type=chunk) [Backlog](index=3&type=section&id=Backlog) Contracted backlog decreased by $71.4 million to $256.909 million as of June 30, 2025, from $328.345 million at December 31, 2024, primarily due to performance on existing contracts and IM-2 mission close-out adjustments, partially offset by new awards - Contracted backlog is defined as the total estimated future revenue from awarded contracts, less previously recognized revenue[11](index=11&type=chunk) Backlog (in thousands of dollars) | Metric | June 30, 2025 | December 31, 2024 | Change | | :------ | :-------------- | :---------------- | :----- | | Backlog | $256,909 | $328,345 | $(71,436) | - The decrease in backlog was primarily due to **$112.8 million** from performance on existing contracts and **$8.4 million** from IM-2 mission close-out adjustments[28](index=28&type=chunk) - The decrease was partially offset by **$49.8 million** in new awards, including **$18.0 million** for the NSN contract, **$10.0 million** for the TSC grant, and **$7.0 million** for the OMES III contract[28](index=28&type=chunk) [Additional Information](index=3&type=section&id=Additional%20Information) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Intuitive Machines hosted a conference call on August 7, 2025, at 8:30 am Eastern Time to discuss the Q2 2025 results, with a webcast replay available on the company's investor relations website - Conference call held on August 7, 2025, at 8:30 am Eastern Time to discuss financial results[7](index=7&type=chunk) - A live webcast and replay are available on the investors portion of the Intuitive Machines' website: https://investors.intuitivemachines.com[7](index=7&type=chunk)[8](index=8&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This press release includes forward-looking statements regarding future expectations, plans, financial performance, and industry outlook, which are subject to various risks and uncertainties and are not guarantees of future performance, with no obligation to update them unless required by applicable securities laws - The press release includes 'forward-looking statements' as defined by the Private Securities Litigation Reform Act of 1995, identified by words such as 'anticipate,' 'expect,' 'plan,' etc[13](index=13&type=chunk) - These statements cover expectations and plans related to business combinations, lunar missions, product demand, contract bids, revenue, operations, financial performance, and business strategy[13](index=13&type=chunk) - Actual results may differ materially due to various factors, including reliance on key personnel, limited operating history, competition, safety performance, cyber incidents, market failures, launch delays, customer concentration, and regulatory compliance[13](index=13&type=chunk) - Forward-looking statements are based on information available as of the presentation date, and the company does not undertake any obligation to update them, except as required by applicable securities laws[14](index=14&type=chunk) [Contacts](index=4&type=section&id=Contacts) Contact information for investor and media inquiries is provided - For investor inquiries: investors@intuitivemachines.com[15](index=15&type=chunk) - For media inquiries: press@intuitivemachines.com[15](index=15&type=chunk)

Core Insights - Intuitive Machines, Inc. reported a revenue of $50.3 million for Q2 2025, representing a 21% increase compared to Q2 2024, driven by growth across key programs [6][20] - The company ended Q2 2025 debt-free with $345 million in cash, indicating strong balance sheet strength and liquidity for future growth [6][20] - The company signed a purchase agreement to acquire KinetX, enhancing its capabilities in space navigation and flight dynamics [6][31] Financial Performance - Revenue for the first half of 2025 totaled $112.8 million, slightly down from $114.9 million in the same period of 2024 [20] - Operating loss for Q2 2025 was $28.6 million, compared to a loss of $27.5 million in Q2 2024 [20] - Net loss attributable to the company for Q2 2025 was $25.3 million, a decrease from a net income of $18.5 million in Q2 2024 [20] Strategic Initiatives - The company expanded its production footprint at Houston Spaceport by 140,000 square feet to support in-house satellite and spacecraft production [6] - Intuitive Machines is pursuing further strategic mergers and acquisitions, particularly in data services and National Security Space markets [3][6] - The company achieved a backlog of $256.9 million as of June 30, 2025, down from $328.3 million at the end of 2024, primarily due to performance on existing contracts [29][31] Outlook - Full-year 2025 revenue is projected to be near the low end of prior outlook, with expectations of reaching the prior midpoint of $275 million later in the year [7] - The company anticipates positive adjusted EBITDA in 2026, indicating a focus on improving operational performance [7]

Core Viewpoint - Intuitive Machines, Inc. has signed a definitive agreement to acquire KinetX, Inc., enhancing its capabilities in deep space navigation and flight dynamics, and marking its formal entry into this segment of space operations [1][2]. Company Overview - Intuitive Machines is a leading space technology, infrastructure, and services company focused on lunar access and space commercialization, with successful lunar missions in 2024 and 2025 [8]. - KinetX, with over 30 years of experience, specializes in deep space navigation and has supported various NASA and National Security Space missions [4][7]. Acquisition Details - The acquisition is expected to close before the end of 2025, pending customary closing conditions [2]. - KinetX's proprietary navigation software has been instrumental in supporting Intuitive Machines' lunar missions [4]. Strategic Implications - This acquisition strengthens Intuitive Machines' position as a vertically integrated provider of end-to-end systems for lunar and interplanetary missions [2]. - The integration of KinetX's software and expertise is anticipated to enhance Intuitive Machines' capabilities in delivering secure, autonomous data relay and constellation services [5][6]. Future Opportunities - The combined entity aims to lead in emerging opportunities such as NASA's Near Space Network Services and potential Mars data relay missions [6]. - KinetX's systems engineering capabilities will support key U.S. defense programs and next-generation space architectures [5].