Intuitive Machines Reports Third Quarter 2026 Financial Results; Reports Record Financials Across The Board - Revenue, Profitability, Positive Cash Flow, and…
Intuitive Machines, Inc. (LUNR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Intuitive Machines Reports Third Quarter 2026 Financial Results; Reports Record Financials Across The Board - Revenue, Profitability, Positive Cash Flow, and Backlog Houston, TX, November 12, 2026 -- Intuitive Machines, Inc. (Nasdaq: LUNR, “Intuitive Machines,” or th
How this was made
The 30-second read
Why it matters
Record financials and new NASA contracts suggest accelerated growth, but execution risk remains.
Market read
First‑report earnings with strong numbers and new contract awards provide a clear trading catalyst.
What to watch
Potential execution risk on upcoming NASA launches and capital‑intensive projects.
Intuitive Machines reports record Q3 2026 revenue of $269,348 thousand and record backlog of $1,866,758 thousand, with Q3 Adjusted EBITDA of $8,255 thousand and free cash flow of $33 million, while the operating loss widened year over year.
Revenue rose from $52,437 thousand to $269,348 thousand and backlog reached $1,866,758 thousand, but the Q3 operating loss widened to $(34,249) thousand from $(15,419) thousand, nine-month net loss was $(118,723) thousand against $(47,191) thousand, nine-month free cash flow was $(112,347) thousand, and the company states that Q3 gross margin benefited from net favorable one-time program adjustments.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, Q3 2026 (three months ended Sep 30, 2026)GAAP | $269.3M | – | – |
| Product revenue, Q3 2026GAAP | $215.1M | – | – |
| Service revenue, Q3 2026GAAP | $54.14M | – | – |
| Grant revenue, Q3 2026GAAP | $92K | – | – |
| Cost of product revenue (excluding depreciation and amortization), Q3 2026GAAP | $152.6M | – | – |
| Cost of service revenue (excluding depreciation and amortization), Q3 2026GAAP | $39.59M | – | – |
| Cost of grant revenue (excluding depreciation and amortization), Q3 2026GAAP | $101K | – | – |
| Cost of service revenue, affiliated companies, Q3 2026GAAP | $7.76M | – | – |
| Total cost of revenues, Q3 2026GAAP | $200.0M | – | – |
| Gross margin, Q3 2026 (as stated in highlights)other | $69 million or 26% | – | – |
| Depreciation and amortization, Q3 2026GAAP | $13.18M | – | – |
| Research and development, Q3 2026GAAP | $7.46M | – | – |
| General and administrative expense (excluding depreciation and amortization), Q3 2026GAAP | $82.91M | – | – |
| Total operating expenses, Q3 2026GAAP | $303.6M | – | – |
| Operating loss, Q3 2026GAAP | −$34.25M | – | – |
| Interest income, Q3 2026GAAP | $2.96M | – | – |
| Interest expense, Q3 2026GAAP | −$4.53M | – | – |
| Change in fair value of warrant liabilities, Q3 2026GAAP | $30.01M | – | – |
| Total other income, net, Q3 2026GAAP | $30.89M | – | – |
| Loss before income taxes, Q3 2026GAAP | −$3.35M | – | – |
| Net loss, Q3 2026GAAP | −$3.35M | – | – |
| Net loss attributable to the Company, Q3 2026GAAP | −$4.02M | – | – |
| Net loss attributable to Class A common shareholders, Q3 2026GAAP | −$4.19M | – | – |
| Net loss per share of Class A common stock, basic and diluted, Q3 2026GAAP | $(0.02) | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $8.26M | – | – |
| Net cash provided by (used in) operating activities, Q3 2026GAAP | $66.17M | – | – |
| Purchase of property and equipment (capital expenditures), Q3 2026GAAP | −$32.7M | – | – |
| Free cash flow, Q3 2026 (as stated in highlights)non-GAAP | $33M | – | – |
| Backlog, September 30, 2026non-GAAP | $1.87B | – | – |
| Total revenues, nine months 2026 (nine months ended Sep 30, 2026)GAAP | $662.2M | – | – |
| Product revenue, nine months 2026GAAP | $523.4M | – | – |
| Service revenue, nine months 2026GAAP | $132.9M | – | – |
| Grant revenue, nine months 2026GAAP | $5.95M | – | – |
| Total cost of revenues, nine months 2026GAAP | $527.0M | – | – |
| Depreciation and amortization, nine months 2026GAAP | $41.16M | – | – |
| Research and development, nine months 2026GAAP | $20.78M | – | – |
| General and administrative expense (excluding depreciation and amortization), nine months 2026GAAP | $193.9M | – | – |
| Total operating expenses, nine months 2026GAAP | $782.8M | – | – |
| Operating loss, nine months 2026GAAP | −$120.6M | – | – |
| Total other income, net, nine months 2026GAAP | $1.87M | – | – |
| Loss before income taxes, nine months 2026GAAP | −$118.7M | – | – |
| Net loss, nine months 2026GAAP | −$118.7M | – | – |
| Net loss attributable to the Company, nine months 2026GAAP | −$87.85M | – | – |
| Net loss attributable to Class A common shareholders, nine months 2026GAAP | −$88.35M | – | – |
| Net loss per share of Class A common stock, basic and diluted, nine months 2026GAAP | $(0.55) | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | −$2.98M | – | – |
| Net cash used in operating activities, nine months 2026GAAP | −$45.71M | – | – |
| Purchases of property and equipment, nine months 2026GAAP | −$66.64M | – | – |
| Free cash flow, nine months 2026non-GAAP | −$112.3M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Product revenueThe release attributes record total revenue to execution across satellite production, lunar delivery, lunar data services, and ground communication networks. The filing prints no prior-year product revenue figure (shown as —) and no percentage change for this line. | $215,118 thousand (Q3 2026) | – | – |
| Service revenuePrior-year service revenue was $50,987 thousand. The filing prints no percentage change for this line and does not explain its movement. | $54,138 thousand (Q3 2026) | – | – |
| Grant revenuePrior-year grant revenue was $1,450 thousand. The filing does not explain its movement. | $92 thousand (Q3 2026) | – | – |
Full-year 2026 outlook
- Revenue$920 - $950 million
- NoteFull-year 2026 Adjusted EBITDA positive
Capital returns
- No repurchase of Class A common stock is shown in Q3 2026 or in nine months 2026 (shown as —). The nine months 2025 column prints repurchase of Class A common stock of $(20,700) thousand.
- Proceeds from issuance of securities were $98,103 thousand in Q3 2026 and $511,875 thousand in nine months 2026. Transaction costs related to the issuance of securities were $(1,627) thousand in Q3 2026 and $(13,336) thousand in nine months 2026.
- Preferred dividends were $(173) thousand in Q3 2026 (prior year $(158) thousand) and $(502) thousand in nine months 2026 (prior year $(456) thousand).
What drove it
- The company states that record gross margin of $69 million or 26% was driven by increased contribution from its satellite production business, higher volume, and net favorable one-time program adjustments, which also includes EAC and other cost adjustments.
- The company states that backlog increased by approximately $1.65 billion from December 31, 2025, including $612.8 million of acquired backlog from the January 2026 Lanteris acquisition, $31.7 million from the August 2026 Goonhilly acquisition, and $1.77 billion in new awards.
- The company states that backlog increase was partially offset by recognized revenue of $662.2 million and several adjustments of $94.7 million, primarily related to the descoping of the remaining Power Propulsion Element contract and partial descoping of a rideshare contract associated with the IM-4 mission.
- The company states that Q3 2026 change in fair value of warrant liabilities of $30,010 thousand is a reconciling item in its Adjusted EBITDA reconciliation, which excludes it from the measure.
Concerns
- Q3 2026 operating loss of $(34,249) thousand compares with $(15,419) thousand in Q3 2025, and general and administrative expense rose to $82,913 thousand from $16,315 thousand.
- Nine months 2026 net loss attributable to the Company was $(87,848) thousand, against $(43,419) thousand in the prior-year nine months, and nine months free cash flow was $(112,347) thousand.
- The company states that Q3 gross margin benefited from net favorable one-time program adjustments, so the reported quarter includes items the company itself describes as one-time.
- The filing reports $94.7 million of adjustments related to descoping, including the remaining Power Propulsion Element contract, which reduced backlog.
- Adjusted EBITDA is a non-GAAP measure. It excludes transaction and integration costs of $9,574 thousand in Q3 2026 and $37,471 thousand in nine months 2026, non-recurring legal expense of $10,304 thousand, and share-based compensation of $10,610 thousand in Q3 2026.
- Trade accounts receivable and contract assets rose sharply from December 31, 2025 levels and the Q3 operating cash flow includes changes in other assets and other liabilities of $(72,930) thousand and $98,681 thousand respectively.
What to watch
- Delivery against the full-year 2026 revenue range of $920 - $950 million, given nine-month revenue of $662,246 thousand.
- Whether full-year 2026 Adjusted EBITDA is positive, as guided, given nine-month Adjusted EBITDA of $(2,983) thousand.
- Conversion of the $1,866,758 thousand backlog into revenue, as the company stated it expects through repeatable production, operational excellence, and reliable customer delivery.
- The launch of Altus-1, which the company says remains on track for a planned launch in the March/April timeframe, and the IM-3 mission.
- Whether operating cash flow stays positive after the nine-month operating cash outflow of $(45,706) thousand.
- The company's disclosed material weaknesses in internal control over financial reporting, referenced in its forward-looking statements.
Balance sheet and cash flow
- Cash and cash equivalents were $463,810 thousand at September 30, 2026, against $582,606 thousand at December 31, 2025. Restricted cash was $13,171 thousand against $2,733 thousand.
- Long-term debt, net was $336,860 thousand at September 30, 2026, against $335,335 thousand at December 31, 2025.
- Total assets were $2,235,401 thousand at September 30, 2026, against $757,154 thousand at December 31, 2025. Total shareholders' equity was $235,793 thousand, against a deficit of $(754,447) thousand at December 31, 2025.
- Redeemable noncontrolling interests in mezzanine equity were $783,728 thousand, against $951,536 thousand at December 31, 2025.
- Trade accounts receivable, net was $113,528 thousand against $12,193 thousand at December 31, 2025. Contract assets were $120,259 thousand against $12,236 thousand. Contract liabilities, current were $293,506 thousand against $57,368 thousand.
- Acquisition of businesses, net of cash acquired, was $(17,825) thousand in Q3 2026 and $(464,887) thousand in nine months 2026.
- Net cash provided by financing activities was $82,312 thousand in Q3 2026 and $468,876 thousand in nine months 2026.
Analysis
Intuitive Machines reported total revenues of $269,348 thousand for the third quarter of 2026, against $52,437 thousand in the same quarter of 2025, and nine-month revenues of $662,246 thousand against $165,274 thousand. Product revenue of $215,118 thousand is the largest line and has no prior-year amount, since the prior-year column shows a dash. Service revenue was $54,138 thousand against $50,987 thousand, and grant revenue was $92 thousand against $1,450 thousand. The filing prints no percentage changes, so growth rates are not stated in the document.
The company states that Q3 gross margin was $69 million or 26%, driven by increased contribution from its satellite production business, higher volume, and net favorable one-time program adjustments, which it says also include EAC and other cost adjustments. The income statement shows total cost of revenues of $200,046 thousand in the quarter. Operating expenses rose sharply. General and administrative expense (excluding depreciation and amortization) was $82,913 thousand against $16,315 thousand, depreciation and amortization was $13,180 thousand against $815 thousand, and research and development was $7,458 thousand against $3,957 thousand. The operating loss widened to $(34,249) thousand from $(15,419) thousand, and the nine-month operating loss was $(120,586) thousand against $(54,136) thousand.
Below the operating line, net loss attributable to Class A common shareholders was $(4,189) thousand for the quarter, against $(7,000) thousand, and GAAP net loss per share was $(0.02) against $(0.06). The quarter benefited from a $30,010 thousand change in fair value of warrant liabilities, which the company excludes from Adjusted EBITDA. Q3 Adjusted EBITDA was $8,255 thousand against $(13,164) thousand, and nine-month Adjusted EBITDA was $(2,983) thousand against $(45,076) thousand. Both are non-GAAP measures reconciled to net loss in the release.
Cash generation improved in the quarter. Net cash provided by operating activities was $66,172 thousand against $(7,179) thousand, capital expenditures were $(32,700) thousand, and the company states free cash flow of $33 million. On a nine-month basis, operating cash flow was $(45,706) thousand and free cash flow was $(112,347) thousand, and the company spent $(464,887) thousand on acquisitions net of cash acquired. Cash and cash equivalents fell to $463,810 thousand from $582,606 thousand at December 31, 2025, while total assets rose to $2,235,401 thousand from $757,154 thousand, reflecting the acquisitions and backlog additions. Backlog reached $1,866,758 thousand at September 30, 2026 from $213,070 thousand at December 31, 2025. The company says the increase includes acquired backlog from Lanteris and Goonhilly and $1.77 billion of new awards. The full-year 2026 outlook is revenue of $920 - $950 million and positive Adjusted EBITDA. No prior-period outlook was provided, so no guidance comparison is made.
Management, verbatim
In the third quarter, we delivered record financial performance across the board. These results are an important proof point in our transformation from a company that advanced the state of lunar exploration into a next-generation space prime developing and integrating the technology, infrastructure and services that enable customers to achieve their differentiated missions across space.
Steve Altemus, Chief Executive Officer
As we look to turn the corner into 2027, we remain laser focused on IM-3 along with our first Altus-1 lunar satellite, which remains on track for a planned launch in the March/April timeframe. In addition, our emphasis will be to continue to scale execution and accelerate growth. We expect to convert contracted backlog into revenue through repeatable production, operational excellence, and reliable customer delivery.
Steve Altemus, Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter (Q2 2026) figures for all line items, which the filing does not print.
- Percentage year-over-year and quarter-over-quarter changes for revenue, expense, loss and cash flow lines, which the filing does not print.
- A printed gross margin line item or gross margin figure for the prior year, and a printed gross margin for nine months 2026.
- Prior-year free cash flow for Q3 2025, which is not printed in the filing.
- Backlog as of the prior-year quarter end (September 30, 2025). The filing prints only December 31, 2025 backlog.
- Segment-level revenue, operating results or Adjusted EBITDA by business line; the filing reports revenue only by product, service and grant lines.
- Full-year 2026 gross margin, operating expense, and tax rate guidance; the filing gives only revenue and Adjusted EBITDA direction.
- Prior-period outlook, so vs_prior_guidance cannot be assessed.
- Nine-month 2026 gross margin and nine-month 2025 gross margin as a separate figure.
- Prior-quarter and percentage change figures for the balance sheet items shown at December 31, 2025.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Intuitive Machines (Nasdaq:LUNR) is a space‑technology and infrastructure services company that filed a Form 8‑K with Q3 results.
Ticker impact
Intuitive Machines reported Q3 2026 results with record $269M revenue, $66M cash flow and $1.9B backlog.
likely upside as investors price record revenue and positive cash flow.
First‑report earnings with material numbers and forward guidance; market typically reacts positively to such beats.
Market effects
Boosts sentiment for space‑technology and satellite services sector.
Positive for U.S. aerospace equities.
Highlights growing commercial lunar and NASA contracts worldwide.
Counterpoint
If the backlog conversion slows, the rally could be limited.
Key entities
- companyIntuitive Machines, Inc.
Subject of the earnings release.
- government_agencyNASA
Awarded a $10B IDIQ contract to the company.
