Intuitive Machines Exceeds Revenue Expectations in Q1 2025, Sets Full-Year Target of $250M to $300M

Intuitive Machines, Inc. (NASDAQ:LUNR) reported its first-quarter financial results on Thursday, exceeding expectations and providing a promising outlook for the year ahead. The company, a leading provider of space technology and infrastructure, achieved a revenue of $62.5 million, exceeding the anticipated $59.42 million. This marks a 14% increase from the previous quarter.

The company's gross margin expanded to 11%, resulting in a gross profit of $6.7 million, the third consecutive quarter with a positive gross margin. The expansion in gross margin was attributed to efficient program execution and a shift towards higher-margin service businesses.

Moreover, Intuitive Machines reported a positive operating cash flow of $19.4 million and capital expenditures of $6.1 million, leading to a positive free cash flow of $13.3 million. This strong cash performance was largely influenced by the timing of milestone payments and the improvement in gross margin.

At the end of the quarter, the company held a cash position of $373.3 million and had zero debt on its balance sheet. This follows the completion of the warrant redemption process, which streamlined Intuitive Machines' capital structure.

"We remain focused on executing our strategy and delivering value to our shareholders," said CEO Steve Altemus. "Our company is uniquely positioned to provide critical capabilities and infrastructure for the emerging space economy."

In terms of earnings, the company reported a loss of $0.24 per share, which is in line with the market estimates. However, the revenue figures exceeded expectations.

For the second quarter of 2025, Intuitive Machines anticipates revenue in the range of $160 million to $180 million, with an adjusted EBITDA loss of $15 million to $20 million. The company's revenue guidance for the full year of 2025 is set between $250 million and $300 million, with an optimistic outlook for achieving a positive run-rate adjusted EBITDA by year-end 2025 and positive adjusted EBITDA in 2026.

The company's future performance will be influenced by its ongoing projects and contract wins. As of March 31, 2025, Intuitive Machines' backlog stood at $272.3 million, showing a decrease from the previous quarter due to the continued performance on existing contracts.

However, this decrease was partially offset by new awards, including the OMES III contract and other federal services contracts. With its proven track record, Intuitive Machines plans to expand its offerings of modular infrastructure and data services across the space economy, aiming to generate long-term sustainable shareholder value through its business strategy and plans for revenue generation.

The company is also focused on enhancing its liquidity position and strengthening its balance sheet to support strategic initiatives.