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Revenue: $62.5 million in Q1 2025, up 14% over Q4 2024.
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Gross Profit: $6.7 million in Q1 2025, compared to $0.7 million in Q4 2024.
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SG&A Expenses: $16.1 million in Q1 2025, compared to $13.5 million in Q4 2024.
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Operating Loss: $10.1 million in Q1 2025, compared to $13.4 million in Q4 2024.
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Adjusted EBITDA: Negative $6.6 million in Q1 2025, an improvement of $4.6 million from Q4 2024.
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Operating Cash Flow: $19.4 million generated in Q1 2025.
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Free Cash Flow: Positive $13.3 million in Q1 2025.
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Cash Balance: $373.3 million at the end of Q1 2025.
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Contracted Backlog: $272.3 million at the end of Q1 2025.
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Guidance: Revenue range of $250 million to $300 million for 2025, with positive run rate adjusted EBITDA by Q4 2025.
Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Intuitive Machines Inc (NASDAQ:LUNR) reported a strong first quarter with revenues of $62.5 million, marking a 14% increase over Q4 2024.
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The company achieved positive free cash flow for the first time in its history, driven by milestone payments and improved gross margins.
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Intuitive Machines Inc (NASDAQ:LUNR) has a significant cash balance of $373.3 million, with no debt, providing financial flexibility for future growth opportunities.
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The company is advancing its capabilities in Earth reentry technology, supported by a $10 million contract from the Texas Space Commission.
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Intuitive Machines Inc (NASDAQ:LUNR) is making progress in diversifying its revenue streams, with advancements in national security space and data transmission services under NASA's NSNS contract.
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The IM-2 mission faced a landing anomaly, leading to an early termination and impacting the recognition of success payments.
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The company's contracted backlog decreased from $328.3 million in Q4 2024 to $272.3 million in Q1 2025.
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Intuitive Machines Inc (NASDAQ:LUNR) reported an operating loss of $10.1 million for the quarter, although this was an improvement from the previous quarter.
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The company faces challenges in executing lunar missions due to harsh environmental conditions, requiring additional investments in technology and sensors.
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Free cash flow is expected to remain lumpy throughout the year due to the timing of milestone payments, despite the positive trend.
Q: Do reductions to the planetary science budget or earth science budget impact the revenue opportunity from any of the NASA payload deployment awards you've been getting? A: Stephen Altemus, CEO: We do not see a direct impact on the CLPS budget or our science-based entry point based on the President's budget. There are two procurements expected this year, one in July and another later in the year, which should not be affected by these budget reductions.
Q: Considering the SLS program may have considerable changes, is there any risk of the LTV delivery on a Nova-D lander for either Artemis 3 or beyond being changed or delayed due to the need to procure an alternative launch vehicle? A: Stephen Altemus, CEO: The Luna Terrain Vehicle Services contract is expected to proceed with proposals due in late July and an award in November. Our Novo-D heavy cargo lander with the LTV flies on a Falcon 9 heavy, so there's no requirement for an SLS. This aligns with our Moon to Mars strategy, and we are confident in the LTVS procurement moving forward despite changes to the Artemis program.
Q: How does one differentiate in the reentry vehicle category, given the many attempts over the last few years? A: Stephen Altemus, CEO: Our reentry vehicle is unique due to its guided precision capability and aero shape, allowing for precision landing with about 50 meters accuracy. It offers a soft touchdown, unlike the high-impact touchdowns of ballistic capsules, and can serve as a rapid in-space laboratory for various payloads.
Q: What's your vision on nuclear propulsion in space, and how does it play out? A: Stephen Altemus, CEO: We are working on the AFRL JETSON low power program, which uses nuclear material to generate power, replacing solar arrays. This allows for smaller, less visible satellites with abundant power. We also proposed a 10-kilowatt nuclear reactor for the lunar surface, which would be the first infrastructure for nuclear power on the moon. Nuclear advancements are crucial for sustained presence and movement in space.
Q: Can you elaborate on the IM-2 milestones expected to be recognized in Q2, including the success payment? A: Stephen Altemus, CEO: We had about $14 million in constrained revenue for the IM-2 mission. Despite the mission being partially successful, we expect to close about half of these payments in Q2, with the remainder possibly extending into Q3. We are working closely with NASA and commercial customers to finalize these contracts.
Q: How should we think about free cash flow for the rest of the year after your first positive free cash flow quarter? A: Stephen Altemus, CEO: The positive free cash flow was driven by milestone payments in Q1. While this is a positive trend, free cash flow will remain lumpy throughout the year due to the timing of receipts. We expect consistent free cash flow by 2026.
Q: How does a continuing resolution for fiscal 2026 affect Intuitive Machines? A: Stephen Altemus, CEO: We are largely unaffected by a continuing resolution as we have existing initiatives and programs with NASA. We are monitoring the reconciliation bill's impact on DoD budgets, which could affect contract allocations.
Q: Given the changes needed for future IM Missions, will these affect your cost profile or competitiveness? A: Stephen Altemus, CEO: While landing on the moon is challenging, we've made significant progress. The additional sensors and algorithm tuning for Mission-3 will slightly increase costs, but we are not expecting an impact on the schedule. Our ability to execute remains strong.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
