Intuitive Machines NASDAQ: LUNR reported third-quarter revenue of $269 million, up 31% from the preceding quarter, as satellite production, lunar delivery and communications work contributed to growth. The company also posted positive adjusted EBITDA and record free cash flow, while ending the quarter with $1.9 billion in contracted backlog.
Chief Financial Officer Pete McGrath said the company refined its full-year 2026 revenue outlook to $920 million to $950 million, citing the timing of anticipated contract modifications and awards. Intuitive Machines maintained its forecast for positive adjusted EBITDA for the year and expects to provide a 2027 outlook with its fourth-quarter results.
Profitability and Cash Flow Improve
Third-quarter gross profit rose to $69 million, or 26% of revenue, from $6 million and an 11% margin a year earlier. McGrath attributed the improvement to a greater contribution from satellite production, higher volume and approximately $19 million in net favorable one-time program adjustments, including estimate-at-completion and other cost adjustments.
The company reported a $34 million operating loss. Adjusted EBITDA was positive $8 million, compared with a loss of $13 million in the year-earlier quarter and a loss of $14 million in the second quarter.
Selling, general and administrative expenses totaled $83 million. That included $30 million of share-based compensation, nonrecurring legal expenses and acquisition-related costs excluded from adjusted EBITDA. It also included a $9.5 million reserve related to the HughesNet bankruptcy that was not excluded from the adjusted measure. McGrath said the company believes its reserve sufficiently covers its receivables risk.
Operating cash flow was $66 million, while capital expenditures were $33 million, resulting in $33 million of free cash flow. McGrath said stronger collections, cash associated with new contracts and the absence of unfavorable working-capital timing seen in the previous quarter contributed to the improvement. He also noted that early payments on some contract awards helped cover earlier inventory investments.
Intuitive Machines ended the quarter with $464 million in cash, up from $367 million at the end of the second quarter. The increase included approximately $97 million in net proceeds from its at-the-market stock offering program. McGrath said capital spending is expected to remain elevated as the company builds lunar communications satellites and associated ground infrastructure.
Backlog Supports 2027 Outlook
New bookings and backlog assumed through the Goonhilly and COMSAT acquisition totaled approximately $450 million in the quarter. Bookings included 18 AMDT3 satellites, two IM 300 satellites for Hartford and NASA’s EAGLE-VSWIR Earth science spacecraft, McGrath said.
The company expects approximately 13% to 15% of its September 30 backlog to convert to revenue in the fourth quarter of 2026 and 40% to 45% during 2027, with the remainder converting thereafter. Ending backlog was approximately 43% commercial, 32% civil and 25% defense.
Chief Executive Officer Steve Altemus said Intuitive Machines is investing in production readiness, long-lead materials and supplier capacity to make the conversion of awards into revenue more predictable. He identified space-based radios and landing sensors as long-lead items and said the company sometimes purchases inventory in advance to meet customer schedules.
Lunar Mission and Communications Plans
Intuitive Machines plans to launch its IM-3 lunar mission in the March-to-April 2027 timeframe. Altemus said the company fired the engine on the fully integrated lander in late October and still needs to complete end-to-end functional testing and a landing-sensor flight test.
IM-3 is also expected to deploy Altus 1, the first satellite in the company’s lunar communications relay constellation. Altemus estimated that commissioning would take 60 to 90 days after launch. He said the company is discussing operational service revenue from the satellite but has not quantified the potential amount.
The company plans to launch Altus 2 through 5 together in 2028 on a NASA-provided Falcon 9. Altemus said the change from a phased deployment would allow the full constellation to be in place earlier to support expected lunar traffic.
Intuitive Machines is one of eight vendors selected for NASA’s CLPS 2 contract, an indefinite-delivery, indefinite-quantity program with a $10 billion base period and a $5 billion five-year option. Altemus said he expects CLPS 2 task orders to begin in 2027 and potentially include larger cargo landers, orbiters and transfer vehicles. He did not provide an estimate for the value of future individual task orders.
On launch access, Altemus said the company has purchased Falcon 9 boosters for its missions through 2028 and expects access to government-provided launches through 2030. He said the company is monitoring the transition to alternative launch vehicles and providers.
About Intuitive Machines (NASDAQ:LUNR)
Intuitive Machines is a space exploration and infrastructure company headquartered in Houston, Texas. It develops and operates lunar landers and provides services intended to support missions to the Moon and other space destinations. The company's offerings include lunar payload delivery, spacecraft and mission operations, and communications and data services. Its Nova-C lunar lander is designed to carry scientific instruments and other customer payloads to the lunar surface, including through NASA's Commercial Lunar Payload Services program.
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