Intuitive Machines — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported record quarterly revenue of $269.3 million for the three months ended September 30, 2026, compared to $52.4 million in the same period in 2025.
• Achieved record gross margin of $69 million (26%) for the quarter, driven by satellite production volume, higher contribution from the satellite production business, and net favorable one-time program adjustments.
• Reported record quarterly cash from operations of $66.2 million, with capital expenditures of $32.7 million, resulting in positive free cash flow of $33.5 million for the quarter.
• Recorded a net loss of $3.4 million for the quarter, compared to a net loss of $10.0 million in the prior year period; nine-month net loss was $118.7 million compared to $47.2 million in the prior year.
• Ended the quarter with a record backlog of $1.9 billion, an increase of $1.7 billion from year-end 2025.
• Total assets increased to $2.24 billion as of September 30, 2026, from $757.2 million as of December 31, 2025.
• Long-term debt remained stable at $336.9 million as of September 30, 2026, compared to $335.3 million as of December 31, 2025.
• Adjusted EBITDA was positive $8.3 million for the quarter, compared to a loss of $13.2 million in the prior year period.

Guidance and Future Outlook:

• Provided full-year 2026 revenue guidance of $920 million to $950 million.
• Expects full-year 2026 Adjusted EBITDA to be positive.
• Plans to launch the IM-3 mission and the first Altus-1 lunar satellite in the March/April 2027 timeframe.
• Intends to accelerate plans for the Near Space Network cislunar constellation, deploying Altus-2 through Altus-5 together in 2028 on a NASA-provided launch vehicle.
• Management aims to convert contracted backlog into revenue through repeatable production, operational excellence, and reliable customer delivery.

Business Segments and Product Lines:

• Awarded as a vendor for NASA's $10 billion IDIQ contract (plus a $5 billion option) for the next-generation Commercial Lunar Payload Services 2 (CLPS 2) in Q4.
• Booked $450 million in new awards and Goonhilly acquisition backlog, primarily driven by the Accelerated Missile Defense Tranche 3 ("AMDT3") constellation, NASA's JPL EAGLE-VSWIR, and two IM 300™ series platforms for a National Security Space application.
• Contracted with NASA's Jet Propulsion Laboratory (JPL) for FALCON-RADAR in Q4 as part of the Fleet for the Atmospheric Linking Commercial Observations with NASA mission.
• Closed the acquisition of Goonhilly Earth Station and COMSAT to expand space-to-ground data services across LEO, MEO, GEO, cislunar, and deep space environments.
• Revenue sources included $215.1 million in product revenue and $54.1 million in service revenue for the quarter.
• Recognized $662.2 million in revenue during the first nine months of 2026.

Market and Competitive Landscape:

• Secured diverse awards across civil, commercial, and national security space customers throughout the year.
• Expanded capabilities to support Artemis and Moon Base infrastructure requirements, including transportation, mobility, power, habitats, and logistics.
• Backlog growth included $1.77 billion in new awards, partially offset by $662.2 million in recognized revenue and $94.7 million in adjustments related to descoping of the Power Propulsion Element ("PPE") contract and a partial descoping of a rideshare contract associated with the IM-4 mission.

Risks and Challenges:

• Forward-looking statements include risks such as launch failures, satellite or lander failures, and delays in launch schedules.
• Risks include reliance on a limited number of suppliers, government funding levels, and potential changes in government contracts or programs.
• Potential impacts from safety performance issues, cyber incidents, and counterparty risks on contracts.
• Risks associated with the handling of energetic materials and compliance with export/import control laws.
• Potential for significant financial result fluctuations from quarter to quarter and dependence on U.S. government contracts.

Management Commentary and Tone:

• CEO Steve Altemus described the quarter as delivering "record financial performance across the board," citing results as a proof point of the company's transformation into a next-generation space prime.
• Management stated they remain "laser focused" on the IM-3 mission and scaling execution to accelerate growth in 2027.
• The tone emphasizes a shift from advancing lunar exploration to developing integrated technology, infrastructure, and services for customers.

Other Key Points:

• The backlog increase of approximately $1.65 billion from December 31, 2025, includes $612.8 million from the January 2026 Lanteris acquisition and $31.7 million from the August 2026 Goonhilly acquisition.
• The company reported positive free cash flow of $33 million for the quarter, calculated as net cash from operations of $66 million less capital expenditures of $33 million.
• The Condensed Consolidated Balance Sheets show a significant increase in inventory ($70.6 million) and contract assets ($120.3 million) compared to zero or minimal balances at year-end 2025.
• Share-based compensation expense was $10.6 million for the quarter and $29.9 million for the nine months ended September 30, 2026.
• The company hosts a conference call on November 12, 2026, at 8:30 am Eastern Time to discuss results.