Intuitive Machines plans $250 million convertible notes offering

Published 13/08/2025, 21:06
Intuitive Machines plans $250 million convertible notes offering

HOUSTON - Space exploration company Intuitive Machines, Inc. (NASDAQ:LUNR), currently valued at $1.87 billion, announced Wednesday its intention to offer $250 million in convertible senior notes due 2030 to qualified institutional buyers through a private placement. According to InvestingPro data, the company maintains a strong liquidity position, with liquid assets exceeding short-term obligations.

The company said it would grant initial purchasers an option to buy up to an additional $37.5 million in notes. The securities will be senior, unsecured obligations with interest payable semiannually beginning April 1, 2026, and will mature on October 1, 2030, unless converted, redeemed or repurchased earlier. While the stock has seen significant volatility, with a 185% return over the past year despite a 45% decline in the last six months, InvestingPro analysis indicates the company’s current trading price is near its Fair Value.

According to the announcement, the notes will be convertible into cash, shares of Intuitive Machines’ Class A common stock, or a combination at the company’s discretion. The interest rate and initial conversion rate will be determined upon pricing.

Intuitive Machines plans to use part of the proceeds to fund capped call transactions designed to reduce potential dilution to its stock upon note conversion. The remaining funds will support general corporate purposes, including operations, research and development, and potential acquisitions. With revenue growth of 43% in the last twelve months and a current ratio of 3.7, InvestingPro data reveals 10 additional key insights about the company’s financial health and growth prospects, available to subscribers.

In connection with the offering, the company expects to enter into privately negotiated capped call transactions with initial purchasers or their affiliates. These transactions are intended to offset potential dilution from the notes’ conversion.

The notes and any shares issuable upon conversion will only be offered to qualified institutional buyers under Rule 144A of the Securities Act and have not been registered under securities laws, the company stated.

Intuitive Machines successfully landed a lunar lander on the Moon in 2024, marking the United States’ first lunar surface return since 1972, and completed a second landing at the lunar south pole in 2025, according to the press release statement. While analysts expect net income growth this year, detailed financial projections and comprehensive analysis are available in the company’s Pro Research Report, one of 1,400+ deep-dive reports available exclusively on InvestingPro.

In other recent news, Intuitive Machines Inc. reported its Q2 2025 earnings, which fell short of market expectations. The company announced an earnings per share (EPS) of -$0.045, missing the anticipated $0.01. Revenue was reported at $50.3 million, significantly below the forecasted $68.46 million. These results highlight a notable shortfall in both earnings and revenue targets. The earnings miss was followed by a pre-market stock price drop, although stock price movements are not the focus here. These developments reflect the company’s current financial challenges. Investors and analysts will be closely monitoring Intuitive Machines for any strategic adjustments in response to these results.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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