0001628280-25-052039
SEC filingRevenue fell 10% YoY to $52.4M as OMES III and LTV contracts wound down, partly offset by IM-4 ramp; operating loss widened.
In Q3 2025, Intuitive Machines reported total revenue of $52.4 million, a 10% decline from $58.5 million in the same quarter last year. The decrease was primarily driven by a $17.1 million reduction on the OMES III contract due to NASA's cancellation of the OSAM project task orders and a $9.9 million decline on the LTV contract, which completed in Q2 2025. These headwinds were partially offset by a $13.1 million increase in CLPS mission revenue—notably the IM-4 mission, which contributed $13.7 million versus just $0.1 million a year ago—and a $1.8 million ramp in the NSNS contract. Other engineering services added $6.1 million.
Operating loss widened to $15.4 million from $13.7 million, as gross margin pressure from lower-margin cost-reimbursable contracts and an $8.0 million surge in general and administrative expenses (driven by R&D, legal, and professional fees) outweighed the 14% drop in cost of revenue. Net loss improved dramatically to $10.0 million from $80.4 million, but this was almost entirely due to non-recurring favorable mark-to-market adjustments on warrant and earn-out liabilities totaling $68.9 million.
The company operates as a single reportable segment, but MD&A provides granularity by contract type. The revenue mix continues to shift from completed missions (IM-1, IM-2) toward active development programs (IM-3, IM-4) and new service contracts (NSNS, OMES III, JETSON). IM-3 and IM-4 are both in loss positions, with accrued contract losses of $9.7 million and $3.3 million, respectively, for the nine-month period. Meanwhile, cost-reimbursable contracts like OMES III and NSNS provide predictable revenue with lower risk but also lower margins.
Management’s outlook centers on expanding the lunar mission cadence and growing data transmission services. Backlog stood at $235.9 million as of September 30, with expected recognition of 20% over the remainder of 2025 and 45–50% in 2026. Recent acquisitions of KinetX (October 2025) and the planned acquisition of Lanteris Space Systems (expected Q1 2026) position the company as a vertically integrated space prime, but will require significant integration and capital outlay. The $345 million convertible note issuance and $622 million cash balance provide ample liquidity for near-term operations and the $450 million cash component of the Lanteris deal. However, the shift to fixed-price development contracts for IM-3 and IM-4 carries execution risk, and the loss of EGC/smaller reporting company status at year-end will increase compliance costs. Adjusted EBITDA for the nine months was -$45.2 million, compared to -$30.5 million in the prior year, indicating that underlying cash consumption remains elevated as the company invests in new infrastructure and satellite development.
As of September 30, 2025, the company held $622.0 million in cash and cash equivalents, a significant increase from $207.6 million at December 31, 2024. Total assets grew to $753.5 million from $355.4 million, driven primarily by the cash influx from the convertible note issuance. Total debt stood at $334.8 million, consisting entirely of the $345.0 million aggregate principal of 2.500% convertible senior notes due 2030, net of unamortized discount and issuance costs. The company also has a $40.0 million secured revolving credit facility with Stifel Bank, which remained undrawn as of period end. Shareholders' deficit improved to ($403.3 million) from ($1,008.0 million), largely due to the conversion of earn-out liabilities and warrant exercises. Working capital was $560.0 million.
The company disclosed $93.2 million in remaining purchase obligations under non-cancelable commitments with various vendors, primarily for launch services and component development. Of this, $11.9 million is due within the remainder of 2025, $59.7 million in 2026, and $21.6 million in 2027. Additionally, the company has operating lease obligations totaling $109.1 million in undiscounted cash flows, with $81.3 million due after 2029. Contract liabilities, including deferred revenue and loss provisions, totaled $67.8 million. The company also disclosed loss contracts on several missions, with aggregate net losses of $23.9 million for the nine months ended September 30, 2025.
Capital allocation activities were significant. The company issued $345.0 million in convertible notes, using $36.8 million to purchase capped call transactions to reduce potential dilution. It also repurchased 941,080 shares of Class A Common Stock for $20.7 million in connection with a warrant redemption. Capital expenditures totaled $26.0 million for the nine months, primarily for satellite and ground network assets. Preferred dividends of $0.5 million were accrued. No common stock dividends were declared. The company also announced a definitive agreement to acquire Lanteris Space Holdings for $800 million ($450M cash + $350M stock), expected to close in Q1 2026.
The company operates in a single reportable segment. Revenue is disaggregated by contract type: fixed price ($96.0M, 58% of total), cost reimbursable ($62.9M, 38%), time and materials ($5.0M, 3%), and grant revenue ($1.5M, 1%) for the nine months ended September 30, 2025. Substantially all revenues are from U.S. customers; foreign revenues were 10% and 6% of total for the three and nine months, respectively. One customer accounted for 72% and 78% of total revenue for the three and nine months, respectively.
Operating cash flow (CFO) of -$7.0M for the nine months ended September 30, 2025 represents a significant improvement from -$55.6M in the prior-year period, driven by a narrower net loss (-$47.2M vs. -$181.8M) and favorable working capital changes, particularly a $21.3M decrease in trade receivables and a $24.4M decrease in contract assets. However, CFO remains negative, indicating the company is still consuming cash from operations.
Capital expenditure intensity increased sharply to $26.0M (from $5.2M), reflecting investment in property and equipment. Free cash flow (CFO minus capex) was -$33.0M, worsening from -$60.8M in the prior period due to the capex ramp.
Financing activities provided $447.4M, primarily from $335.5M in convertible note proceeds (net of discount), $176.6M from warrant exercises, partially offset by $36.8M for capped call transactions and $20.7M for share repurchases. The company ended the period with $624.0M in cash, cash equivalents, and restricted cash, up from $209.6M at the start.
Anomalies include a $33.4M non-cash gain from the change in fair value of earn-out liabilities and a $31.9M gain from warrant liabilities, which significantly reduced the net loss but did not affect cash. Working capital swings were favorable, with large decreases in receivables and contract assets, but offset by a $11.7M decrease in contract liabilities.