0001844452-25-000054
SEC filingRevenue grew 21% in Q2 2025 driven by CLPS missions and new NSN/LTV contracts, but operating loss widened slightly due to cost overruns on IM-3 and IM-4 missions.
Revenue for Q2 2025 was $50.3 million, up 21% from $41.6 million in Q2 2024. The increase was driven by CLPS mission contracts (+$11.7 million), new NSN contract ($9.5 million), and LTV contract ($3.9 million). These gains were partially offset by a $19.5 million decline in OMES III revenue following NASA's cancellation of the OSAM project task orders. On a six-month basis, revenue decreased 2% to $112.8 million from $114.9 million, reflecting the OMES III decline partially offset by growth in CLPS missions and new contracts.
Operating loss widened to $28.6 million in Q2 2025 from $27.5 million in Q2 2024. Cost of revenue increased 8% to $62.2 million (including affiliated companies), driven by higher costs on CLPS missions ($13.1 million), LTV ($3.3 million), and NSN ($3.8 million), partially offset by lower OMES III costs. Notably, IM-3 mission costs rose significantly due to schedule alignment with an internal satellite, and both IM-3 and IM-4 became loss contracts, with combined loss accruals of $20.9 million in Q2.
Net loss was $38.2 million versus net income of $16.7 million in the prior year, primarily due to unfavorable fair value adjustments on warrant liabilities (-$13.0 million) and earn-out liabilities ($0 vs +$22.1 million in 2024), partially offset by $3.4 million interest income. Excluding these non-operating items, Adjusted EBITDA was -$25.4 million, nearly flat year-over-year.
The company operates as one reportable segment across three pillars: Delivery Services, Data Transmission Services, and Infrastructure as a Service. Revenue mix shifted toward newer contracts: NSN and LTV contracts contributed significantly in 2025, while OMES III shrank. CLPS missions (IM-2, IM-3, IM-4) remain the largest revenue driver but are becoming loss-making due to cost overruns. The IM-2 mission completed in March 2025, and close-out is expected in Q3 2025. IM-3 launch is delayed to H2 2026, and IM-4 to no later than August 2028.
Backlog decreased 22% to $256.9 million from $328.3 million at year-end 2024, reflecting revenue recognition and close-out adjustments, partially offset by new awards ($49.8 million) including NSN ($18 million) and Texas Space Commission grant ($10 million).
Management expects to continue investing in lunar and data programs, with capital expenditures primarily for satellite and ground network development. The company has a $40 million undrawn Stifel credit facility. Cash and equivalents of $344.9 million are deemed sufficient for at least twelve months. No specific revenue or margin guidance was provided, but the company expects to recognize 30-35% of backlog in the remainder of 2025. The IM-3 loss position and IM-4 becoming loss contract signal margin pressure. The company will lose emerging growth company status at year-end 2025, increasing compliance costs.
As of June 30, 2025, Intuitive Machines held $344.9 million in cash and cash equivalents, a significant increase from $207.6 million at December 31, 2024. Working capital stood at $289.5 million. The company had no outstanding debt under its $40.0 million Stifel Bank revolving credit facility, though it was not in compliance with the minimum revenue covenant for Q2 2025 (waived by the bank). Total assets were $475.6 million, up from $355.4 million at year-end 2024. Shareholders' deficit improved to -$379.1 million from -$1.0 billion, driven largely by the conversion of earn-out liabilities and warrant exercises.
Total remaining purchase obligations under non-cancelable commitments with vendors were $93.2 million as of June 30, 2025. These commitments are primarily for launch services and component development in support of customer contracts. The timing is: $29.4 million due in the remainder of 2025, $43.5 million in 2026, and $20.3 million in 2027. Contract liabilities totaled $71.6 million, including $68.4 million current and $3.2 million non-current. The company also recorded $12.6 million in contract loss provisions across multiple lunar payload service contracts (IM-3, IM-4, and others).
In February 2025, the company repurchased 941,080 shares of Class A common stock for $20.7 million from a director in connection with the warrant redemption. Preferred dividends of $298,000 were accrued in H1 2025. Capital expenditures totaled $14.2 million, primarily for communications satellite and ground network assets. No debt was issued or repaid during the period; the Stifel facility remained undrawn. The company also issued 7.5 million shares of Class C common stock related to earn-out awards, valued at $167.5 million.
The company operates in a single reportable segment. Revenue is disaggregated by contract type: fixed-price ($65.7M, 58% of H1 revenue), cost-reimbursable ($43.7M, 39%), and time-and-materials ($3.4M, 3%). Substantially all revenue is derived from U.S. customers. One customer (NASA) accounted for 85% and 81% of total revenue for the three and six months ended June 30, 2025, respectively.
In H1 FY2025, Intuitive Machines reported a net loss of $37.2M, yet operating cash flow turned positive to $0.2M, marking a significant improvement from -$37.7M in the prior year. This divergence was driven by large non-cash adjustments: $33.4M from earn-out liability fair value changes, $29.9M from warrant liability changes, and $5.4M in share-based compensation. Working capital swings, particularly a $26.2M reduction in contract assets and an $8.1M decrease in trade receivables, also boosted cash flow. However, capital expenditures jumped to $14.2M (from $3.8M), reflecting heavy investment in infrastructure, resulting in negative free cash flow of approximately $14.0M (computed from CFO minus capex, but not explicitly stated). Financing activities provided $151.3M, mainly from warrant exercises ($176.6M), offset by $20.7M in share repurchases and $4.5M in tax withholdings. The company ended the period with $344.9M in cash, up from $209.6M. Notable one-time items include the non-cash issuance of $167.5M in Class C common stock for earn-out awards, which did not affect cash flow. Overall, cash flow quality improved due to working capital management, but the sustainability of positive CFO remains uncertain given the reliance on fair value adjustments and continued net losses.