Intuitive Machines(US:LUNR)2025-11-13 21:14Financial 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]