Financial Data and Key Metrics Changes - Q1 revenue was $62.5 million, up 14% from Q4 2024, driven primarily by CLIPS, LTVs, and NSMS execution [27] - Gross profit for the quarter was $6.7 million, compared to $0.7 million in Q4 2024, marking the third consecutive quarter of positive gross margins [28] - Operating loss for the quarter was $10.1 million, improved from a loss of $13.4 million in Q4 2024 [29] - Positive free cash flow of $13.3 million was achieved for the first time in the company's history [30] - Cash balance increased to $373.3 million, driven by the redemption of warrants and positive free cash flow [32] Business Line Data and Key Metrics Changes - Under NASA's NSNS contract, $3 million in revenue was recognized during Q1, with an additional task order valued at $18 million issued for upcoming milestones [14] - The company secured a key contract for an Earth reentry vehicle, broadening its footprint across the space domain [11] - Significant progress was made in stealth satellite and orbital transfer vehicle programs during Q1 [11] Market Data and Key Metrics Changes - The company anticipates continued opportunities in civil and national security space due to evolving federal priorities and budgetary direction [6][7] - The backlog at the end of Q1 was $272.3 million, down from $328.3 million in Q4 2024, with expectations to recognize 45% to 50% in 2025 [34] Company Strategy and Development Direction - The company is diversifying into national security space and leveraging its lunar lander architecture for new government and commercial customers [11][13] - Intuitive Machines aims to build a comprehensive offering in lunar and Mars exploration, aligning with national priorities and long-term strategies [9][25] - The focus remains on execution and leveraging proven performance to expand into adjacent markets [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of core exploration programs despite potential budget reductions in NASA's science budget [9] - The company expects to achieve positive adjusted EBITDA by Q4 2025 and positive adjusted EBITDA for 2026 [35] - Management highlighted the importance of learning from past missions to improve future performance [22] Other Important Information - The company is actively discussing with National Security Space stakeholders to host multi-agency payloads on its Lunar Data Relay satellites [15] - A $40 million credit facility was opened to smooth out working capital fluctuations [33] Q&A Session Summary Question: Do reductions to the planetary science budget impact revenue opportunities from NASA payload deployment awards? - Management indicated no direct impact on the CLPS budget based on the president's budget [40] Question: Is there any risk of LTV delivery being changed or delayed due to the need for an alternative launch vehicle? - Management confirmed that the LTV procurement is moving forward and is not dependent on SLS [43] Question: Can you elaborate on the IM2 milestones expected to be recognized in Q2? - Management expects about half of the $14 million in success payments for IM2 to close in Q2 [55] Question: How does the company view the potential for M&A in the current market? - Management looks opportunistically at M&A to add capabilities that provide competitive advantages [69] Question: How does the company see the global competitive environment for NSN evolving? - Management noted that international collaboration is currently more prevalent than competition in the near space network [77]

Financial Data and Key Metrics Changes - Q1 revenue was $62.5 million, up 14% from Q4 2024, driven primarily by CLIPS, LTVs, and NSMS execution [26] - Gross profit for the quarter was $6.7 million, compared to $0.7 million in Q4 2024, marking the third consecutive quarter of positive gross margins [27] - Operating loss decreased to $10.1 million from $13.4 million in Q4 2024, driven by higher gross profits [28] - Positive free cash flow of $13.3 million was achieved for the first time in the company's history [29] - Cash balance increased to $373.3 million, driven by the redemption of warrants and positive free cash flow [30] Business Line Data and Key Metrics Changes - Under NASA's NSNS contract, $3 million in revenue was recognized during Q1, with an additional task order valued at $18 million issued for upcoming milestones [13] - The company secured a $10 million contract from the Texas Space Commission for developing a precision Earth reentry vehicle [12] - Significant progress was made in stealth satellite and orbital transfer vehicle programs, with a key contract award for an Earth reentry vehicle [10] Market Data and Key Metrics Changes - The company is leveraging federal budget signals and NASA's funding priorities to expand into adjacent markets like national security space [6] - The evolving federal landscape presents opportunities for Intuitive Machines, particularly in civil and national security space [5] Company Strategy and Development Direction - The company aims to diversify into national security space while continuing to execute on its core exploration programs [10] - Intuitive Machines is focused on delivering end-to-end space services from lunar surface operations to precision Earth reentry [12] - The company is advancing its Lunar Terrain Vehicle Services contract and integrating its data transmission architecture to enhance competitiveness [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of core exploration programs despite potential budget reductions in NASA's science budget [7] - The company anticipates continued opportunities for key contract awards throughout the year, with a focus on execution [25] - Management highlighted the importance of learning from past missions to improve future performance and maintain a competitive edge [21] Other Important Information - The company ended Q1 with a contracted backlog of $272.3 million, down from $328.3 million in Q4 2024 [32] - Guidance for 2025 revenue is expected to range between $250 million and $300 million, with a positive adjusted EBITDA run rate by Q4 2025 [34] Q&A Session Summary Question: Do reductions to the planetary science budget impact revenue opportunities from NASA payload deployment awards? - Management indicated that they do not see a direct impact on the CLPS budget based on the president's budget [39] Question: Is there any risk of LTV delivery being changed or delayed due to the need for an alternative launch vehicle? - Management stated that the Lunar Terrain Vehicle Services contract procurement is moving forward and is not dependent on SLS [42] Question: How does the company differentiate its reentry vehicle in the market? - The company highlighted its unique precision landing capabilities and soft touchdown technology as differentiators [46] Question: What is the company's view on nuclear propulsion and its applications in space? - Management discussed ongoing work on low power nuclear propulsion systems and their potential for sustained presence in space [48] Question: Can you elaborate on the IM2 milestones expected to be recognized in Q2? - Management expects to close out about $14 million in success payments for the IM2 mission, with half expected in Q2 [54] Question: How does the company view the potential for M&A in the current market? - Management is looking opportunistically at M&A to add capabilities that provide competitive advantages [66] Question: How does the company view the competitive environment for NSN? - Management noted that the near space network market is emerging and currently collaborative rather than competitive [76]

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].

Intuitive Machines, Inc. (LUNR) is slated to report first-quarter 2025 results on May 13, before market open. The Zacks Consensus Estimate for first-quarter revenues is pegged at $59.4 million, implying an 18.7% decline from the year-ago quarter's reported figure. The consensus mark for the bottom line is pegged at a loss of 10 cents per share, indicating an improvement from a loss of 21 cents reported in the prior-year quarter. The bottom-line estimate, however, has deteriorated from a loss of five cents p ...

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]