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On Wednesday, Canaccord Genuity analysts showed continued confidence in Intuitive Machines Inc. (NASDAQ:LUNR), lifting the price target from $21.00 to $21.50, while maintaining a Buy rating on the stock. The company’s shares, currently trading at $11.63, have shown remarkable momentum with a 30% gain in the past week, though InvestingPro data indicates the stock is trading above its Fair Value. The aerospace company reported its first-quarter financial results for 2025, revealing an adjusted EBITDA loss of $6.6 million on revenues of $62.5 million. These figures represent a sequential improvement of 41.2% in the adjusted EBITDA loss and a 14.4% increase in revenue. According to InvestingPro, the company maintains a ’Fair’ overall financial health score, with particularly strong momentum metrics. Get access to 13 additional ProTips and comprehensive analysis in the Pro Research Report.
Despite a year-over-year expansion of the bottom-line loss by 524%, Intuitive Machines surpassed analysts’ expectations by approximately 12%. Although the company’s top-line result declined by about 14% compared to the same period last year and fell short of quarterly estimates by roughly 26%, it did experience a quarter-over-quarter growth of around 14%. This growth was attributed to advancements in key active programs such as the Commercial Lunar Payload Services (CLPS), Lunar Terrain Vehicle Services (LTVS), and Navigation Systems for Next-Generation Spacecraft (NSNS).
The decrease in year-over-year revenue for the first quarter of 2025 was due to the irregular nature of some of the company’s major programs. Intuitive Machines anticipates recognizing more than half of the possible $14 million in IM-2 mission success payments as revenue by June 30th, which have not been fully collected yet.
The company also reported a third consecutive quarterly gross profit of $6.7 million, which translates to approximately 11% gross margins. This profitability is a result of efficient operational execution on active programs and a strategic shift towards higher-margin service contracts. Furthermore, Intuitive Machines achieved a milestone by generating $13.3 million in free cash flow (FCF) for the first time in its history, bolstered by the improved margin profile and well-timed milestone payments. This financial achievement contributes to the company’s substantial cash reserves, which stand at approximately $373 million. With a current ratio of 4.39 and more cash than debt on its balance sheet, InvestingPro analysis shows the company maintains strong liquidity position, though investors should note its volatile trading pattern and high revenue valuation multiple.
In other recent news, Intuitive Machines Inc. announced its first quarter 2025 financial results, marking a notable increase in revenue and achieving positive free cash flow for the first time. The company reported revenue of $62.5 million, a 14% rise from the previous quarter, alongside a gross profit of $6.7 million, up from $700,000 in Q4 2024. The earnings release also highlighted a cash balance of $373.3 million, which was strengthened by the redemption of warrants. Intuitive Machines is targeting positive run-rate adjusted EBITDA by Q4 2025 and expects full-year revenue between $250 million and $300 million. The company is also exploring potential mergers and acquisitions to bolster its market standing. In terms of analyst activity, firms have shown interest in the company’s strategic direction, although no specific upgrades or downgrades were noted. Intuitive Machines continues to advance its projects, such as developing a nuclear electric propulsion system for satellites, and anticipates securing a Lunar Terrain Vehicle contract by the end of 2025. These developments reflect the company’s focus on strategic growth and its efforts to maintain a competitive edge in the space technology sector.
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