Intuitive Machines Q2 2025 slides: 21% revenue growth amid continued losses

Introduction & Market Context

Intuitive Machines Inc (NASDAQ:LUNR) presented its Q2 2025 financial results on August 7, 2025, highlighting year-over-year revenue growth of 21% while continuing to operate at a loss. The space technology company’s stock has shown volatility recently, with premarket trading indicating a 1.52% decline following a significant 8.46% drop in the previous session.

The lunar and space infrastructure company reported several strategic initiatives, including a major government contract, infrastructure expansion, and a key acquisition, as it positions itself for long-term growth in the commercial space sector.

Quarterly Performance Highlights

Intuitive Machines reported Q2 2025 revenue of $50.3 million, representing a 21% increase compared to Q2 2024. However, this marks a sequential decline from the $62.5 million reported in Q1 2025. The company’s backlog grew to $256.9 million, a 21% year-over-year increase, providing visibility into future revenue streams.

As shown in the following revenue chart:

Despite the revenue growth, Intuitive Machines continues to operate at a loss, reporting an operating loss of $28.6 million and adjusted EBITDA of negative $25.4 million for the quarter. The company’s gross margin was negative $11.8 million, though this represents an improvement from the negative $16.1 million reported in the same quarter last year.

The financial highlights for the quarter include:

Strategic Initiatives & Contracts

A cornerstone of Intuitive Machines’ growth strategy is its $4.82 billion Near Space Network Services (NSNS) contract, which covers multiple firm-fixed-price indefinite-delivery/indefinite-quantity task orders. The company noted that only $30.5 million of the initial $150 million NSNS contract has been recognized in the current backlog, suggesting significant future revenue potential.

The NSNS contract details include:

The company also secured a $9.8 million Phase Two award to complete the design of its Orbital Transfer Vehicle (OTV) and is executing a sole-source stealth nuclear-powered satellite development for the Air Force Research Laboratory (AFRL). Additionally, Intuitive Machines finalized a Texas Space Commission contract worth up to $10 million to develop a precision Earth reentry vehicle and microgravity research lab.

The company’s orbital transfer vehicle and stealth satellite projects are illustrated here:

Infrastructure & Expansion

Intuitive Machines is significantly expanding its production capabilities with a 16,500-square-foot spacecraft development and production space, an 8,000-square-foot warehouse and storage facility, and a new 116,000-square-foot facility lease pre-equipped with manufacturing and testing infrastructure.

The company’s vertical integration strategy is shown in the following facility expansion plans:

In a strategic move to enhance its deep space navigation capabilities, Intuitive Machines signed a definitive agreement to acquire KinetX Inc. for $30 million. KinetX brings experience in delivering flight-proven deep space navigation, systems engineering, and constellation mission design to government and international customers, having contributed to Intuitive Machines’ first two lunar missions.

The details of this acquisition are outlined here:

The company is also preparing for its third and fourth lunar missions, with the third mission targeting May 2026 for flight readiness review and the fourth mission scheduled for the second half of 2027.

Financial Analysis

Intuitive Machines ended Q2 2025 with a cash balance of $344.9 million, representing a decrease from the $373.3 million reported at the end of Q1. The company reported negative operating cash flow of $19.3 million, capital expenditures of $8.1 million, and negative free cash flow of $27.3 million for the quarter.

The cash balance trend is illustrated in this chart:

The company’s backlog composition indicates that 30-35% is expected to be recognized in 2025, 40-45% in 2026, and the remainder thereafter. Second-half opportunities include Commercial Lunar Payload Services (CLPS), Phase 2 Lunar Terrain Vehicle (LTV), JETSON, and new OMES task orders.

The backlog breakdown and forecast is shown here:

Forward-Looking Statements

Looking ahead, Intuitive Machines projects full-year 2025 revenue to be near the low end of its prior outlook. The company continues to expect positive adjusted EBITDA in 2026, maintaining its previous guidance despite the current quarter’s losses.

The company is finalizing its proposal for NASA’s next phase of the Lunar Terrain Vehicle (LTV) program, with an award decision expected in the second half of 2025. This contract would involve building, flying, and operating a vehicle on the lunar surface.

Intuitive Machines is also advocating for NASA’s On-orbit Servicing, Assembly, and Manufacturing (OSAM-1) mission, with recent defense appropriations directing NASA and the U.S. Space Force to submit a funding profile and plan to launch OSAM-1 by 2028.

The company’s execution across data transmission, delivery, infrastructure, and financial segments positions it to capitalize on the growing commercial space economy, though challenges remain in achieving profitability in the near term.

Full presentation:

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