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Intuitive Machines (NASDAQ:LUNR) surges 35% to a two-month high after reporting $13.3 million in free cash flow and completing the southernmost lunar landing in history.
The company posted Q1 revenue of $62.5 million, missing the $66.1 million Wall Street consensus, but gross margin climbed to 11%, marking a third straight quarter of positive margins as Commercial Lunar Payload Services, Lunar Terrain Vehicle Services and Near Space Network Services all saw growth and a shift toward higher-margin service offerings.
CEO Steve Altemus said, We believe Intuitive Machines brings proven performance and speed to market, pointing to successful Jet Propulsion Laboratory rover tests ahead of the IM-3 mission. Intuitive Machines generated $19.4 million in operating cash and milestone payments and ended the quarter with $373.3 million in cash following a warrant redemption.
The company reaffirmed its 2025 revenue forecast of $250 million to $300 million and expects to reach positive adjusted EBITDA on a run-rate basis by year-end, setting the stage for full-year profitability in 2026. Compared to many space infrastructure peers still burning cash, Intuitive Machines's clear path to profitability stands out.
Management is also diversifying beyond lunar missions into national security and microgravity applications. As the sole contractor on the Air Force Research Laboratory's JETSON nuclear propulsion program and recipient of a $10 million Texas Space Commission grant, the firm is advancing in-space nuclear capabilities and reentry research.
Investors should note that strong cash flow, margin expansion and high-profile government contracts could drive sustainable growth despite the top-line miss.
This article first appeared on GuruFocus.