Intuitive Machines(LUNR) - 2025 Q2 - Quarterly Results

Executive Summary & Business Highlights Company Overview & Business Model 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] - The company is a diversified space technology, infrastructure, and services company focused on fundamentally disrupting lunar access economics[12] - 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] - Products and services are focused through three pillars of space commercialization: Delivery Services, Data Transmission Services, and Infrastructure as a Service[12] CEO Commentary & Strategic Vision 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] - Moved to acquire KinetX, a company specializing in space navigation and flight dynamics software, crucial for future network operations[3][5] - Will remain opportunistic on strategic M&A and evaluate internal investments to accelerate growth and drive long-term shareholder value[4] - Intends to remain aggressive in the marketplace, particularly in data services and National Security Space markets[4] Second Quarter 2025 Operational & Financial Highlights 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] - 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] - Expanded production footprint at Houston Spaceport by 140,000 square feet for satellite and spacecraft production, testing, and mission operations[5] 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] - 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] - Ended Q2 debt-free with $345 million cash, indicating continued balance sheet strength and ample liquidity[5] 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] - Continues to expect positive adjusted EBITDA in 2026[6] Financial Statements Condensed Consolidated Balance Sheets 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] - Substantial reduction in total liabilities, primarily driven by the elimination of earn-out liabilities and a decrease in warrant liabilities[17] Condensed Consolidated Statements of Operations 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] - 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] - 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] Condensed Consolidated Statements of Cash Flows 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] - Purchases of property and equipment increased to $14.176 million in H1 2025, up from $3.793 million in H1 2024[21] - 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] Non-GAAP Financial Measures & Key Metrics Adjusted EBITDA Reconciliation 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] 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] - For the six-month period, Adjusted EBITDA loss increased from $23.543 million in 2024 to $31.978 million in 2025[24] Free Cash Flow Reconciliation 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][25] 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] - 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] 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] 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] - 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] Additional Information Conference Call Information 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] - 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] Forward-Looking Statements 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] - These statements cover expectations and plans related to business combinations, lunar missions, product demand, contract bids, revenue, operations, financial performance, and business strategy[13] - 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] - 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] Contacts Contact information for investor and media inquiries is provided - For investor inquiries: investors@intuitivemachines.com[15] - For media inquiries: press@intuitivemachines.com[15]