Intuitive Machines Reports $62.5 Million Revenue in Q1 2025, Net Income Turnaround

Intuitive Machines, Inc. reported a revenue of $62.5 million for the first quarter of 2025, a decrease of 15% from $73.2 million in the same period of 2024. The company attributed this decline primarily to a $20.1 million reduction in revenue from the OMES III contract, following NASA's cancellation of the OSAM project. Despite this, revenue from the IM-3 mission increased to $7.3 million, up from $5.5 million year-over-year, reflecting ongoing progress in lunar payload missions. The company also recognized $6.4 million in revenue from the newly awarded IM-4 mission during the quarter.

Operating expenses for the quarter totaled $72.6 million, down from $76.0 million in the previous year. The cost of revenue, excluding depreciation, decreased slightly to $55.8 million, while general and administrative expenses remained relatively stable at $16.1 million. Intuitive Machines reported an operating loss of $10.1 million, compared to a loss of $2.8 million in the prior year. However, the company recorded a net income of $975,000, a significant turnaround from a net loss of $118.0 million in the first quarter of 2024, largely due to favorable changes in the fair value of warrant liabilities.

In terms of strategic developments, Intuitive Machines completed the redemption of all outstanding warrants on March 6, 2025, resulting in gross proceeds of approximately $176.6 million from the exercise of 15.4 million warrants. The company also entered into a loan agreement with Stifel Bank for a secured revolving credit facility of up to $40 million, which remains unborrowed as of the reporting date. Additionally, the company issued 7.5 million shares of Class C common stock in connection with the vesting of earn-out units, further strengthening its equity position.

Operationally, Intuitive Machines reported a backlog of $272.3 million as of March 31, 2025, down from $328.3 million at the end of 2024. This decrease was primarily due to ongoing performance on existing contracts, although the company secured $6.5 million in new awards during the quarter. The company continues to focus on expanding its lunar mission operations, having successfully completed its IM-1 and IM-2 missions, with plans for additional missions in the near future.

Looking ahead, Intuitive Machines remains optimistic about its growth prospects, driven by increasing government and private sector investment in the space economy. The company plans to continue investing in its lunar and data programs, with expectations of recognizing a significant portion of its backlog in the coming year. Management believes that the current cash and cash equivalents of $373.3 million will be sufficient to fund its short-term liquidity needs and support its business plan through at least the next twelve months.