Intuitive Machines(US:LUNR)2025-08-07 20:27Part I – Financial Information Financial Statements 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 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 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 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 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 service40 - One major customer, NASA, accounted for 85% and 81% of total revenue for the three and six months ended June 30, 2025, respectively57 - 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 sheet6061 - 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 stock169 - 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 million170 Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management discusses financial performance, business model, strategic developments, results of operations, key metrics, and liquidity 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 1972176 - The IM-2 mission landed at the southernmost location of the moon, 5 degrees from the south pole, in March 2025176 Results of Operations 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 cancellations227 Key Business Metrics and Non-GAAP Financial Measures 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 awards244 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 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, 2025254 - 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 repurchase261 - The company has a $40.0 million secured revolving credit facility with Stifel Bank, which remained unborrowed as of June 30, 2025255 Quantitative and Qualitative Disclosures About Market Risk 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 risk279 Controls and Procedures 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, 2025280 - No material changes to internal control over financial reporting occurred during the three months ended June 30, 2025281 Part II – Other Information Legal Proceedings 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 Stock144282 Risk Factors 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, 2025284 - 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 costs287 Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales of equity securities or use of proceeds were reported during the period - None reported285 Other Information No other information is reported for this item - None reported288 Exhibits Lists exhibits filed with the Quarterly Report, including CEO and CFO certifications and Inline XBRL data files