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]