LUNR

Ladies and gentlemen, thank you for standing by, and welcome to the Intuitive Machines first quarter 2026 conference call. I would now like to turn the call and conference over to Stephen Zhang, Head of Investor Relations. Please go ahead.

Good morning. Welcome to the Intuitive Machines first quarter 2026 earnings call. Chief Executive Officer, Steve Altemus, and Chief Financial Officer, Pete McGrath, are leading the call today. Before we begin, please note that some of the information discussed during today's call will consist of forward-looking statements, setting forth our current expectations with respect to the future of our business, the economy, and other events. The company's actual results could differ materially from those indicated in any forward-looking statements due to many factors. These factors are described under forward-looking statements in the company's earnings press release and the company's most recent 10-K and 10-Q filed with the SEC. We do not undertake any obligation to update forward-looking statements. We also expect to discuss certain financial measures and information that are non-GAAP measures as defined in the applicable SEC rules and regulations.

Reconciliations to the company's GAAP measures are included in the earnings release filed on Form 8-K. We posted an earnings call presentation on our website, which provides additional context on our operational and financial performance. You can find this presentation on our investor relations page at www.intuitivemachines.com/investors. I'll turn the call over to Steve Altemus.

Good morning, and thank you for joining us. Intuitive Machines continues to execute, grow, and win new business at record pace. Our acquisition of Lanteris has been immediately accretive with the combined entity value already bearing fruit. The U.S. Space Force Space Systems Command selected Intuitive Machines for the Andromeda IDIQ contract. Under this 10-year vehicle with an anticipated ceiling value of $6.24 billion, we will compete to design and field next generation space domain awareness capabilities to detect, track, and characterize objects in geosynchronous orbit. This award marks our first major selection as a combined company following the acquisition of Lanteris. These national security priorities will continue to be one of our main focus areas for growth. Today, we are also pleased to announce the signing of a definitive agreement for the purchase of Goonhilly Earth Station and its subsidiary in the U.S., COMSAT.

With KinetX, Lanteris, and now Goonhilly, Intuitive Machines is building the capability to manufacture spacecraft, connect space to ground networks, and operate space infrastructure across multiple domains for a diversified customer base. Intuitive Machines started 2026 with the strongest quarter in our company's history. We delivered record revenue of $187 million, generated more than $30 million of gross margin, and produced positive Adjusted EBITDA for the quarter. We also exited quarter one with a record backlog of $1.1 billion, supported by more than $400 million in new bookings this quarter. Those bookings were led by the Space Development Agency Tranche 3 tracking layer award with L3Harris, as well as our fifth CLPS lunar surface delivery mission. These results show that our strategy is scaling.

We are building a diversified space infrastructure company, one that serves commercial, civil, and national security customers across multiple domains. This diversity is reflected in our revenue mix for the quarter, which was 35% commercial, 38% civil, and 27% national security space. That balance matters. Our path to recurring operational revenue starts with diversification. It depends on building critical infrastructure for multiple customers across multiple markets with multiple capabilities that extend from Earth orbit to the lunar surface and onto Mars and beyond. The Lanteris acquisition accelerated this strategy. It expanded our production base, strengthened our near-term revenue foundation, and added capabilities in geostationary orbit, commercial communications, national security, C-band spectrum clearing, and next generation orbital data centers and relay architectures. At the same time, space activity under NASA's Ignition is moving from isolated missions to sustained cadence and operations.

That shift requires new infrastructure, systems to build spacecraft and surface assets, networks to connect them, and services to operate them over time. That is the model we are building at Intuitive Machines. Build is our production layer. Connect is our network layer. Operate is our recurring services layer. Project Ignition reinforces all three. Over the last several years, we have invested ahead of this transition. We have developed, flown, and validated systems required to operate on and around the moon. We are one of the few companies with lunar operations experience in the last 50+ years, and we are well-positioned in the areas NASA has now made central to its Moon-based architecture across delivery, data, and mobility. Let me start with build. Build is where infrastructure becomes real. It is where mission demand turns into flight hardware, production capacity, supply chain discipline, and delivery cadence.

This delivery cadence is critical for NASA's Ignition initiative, which requires repeatable lunar infrastructure. CLPS is no longer just a series of individual delivery missions. It is becoming a pathway toward a production line lunar delivery capability that can support the industrialization of the moon. NASA's moon-based opportunity includes an expected $20 billion across the first two phases. This includes an increase in the CLPS 1.0 from $2.6 billion-$4.2 billion. Our recent CT-4 CLPS award and the new CS-8 procurement are funded under this CLPS 1.0 contract. CS-8 is focused on moon-based payload deliveries using landers with proven heritage and readiness for deployment by the end of 2028. NASA is expected to announce this award in the coming weeks.

In addition, a $6 billion CLPS 2.0 IDIQ was added to support heavier cargo payload deliveries beyond 2028. The scalability of our Nova-C lander to Nova-D and Super Nova is the natural next step in support of CLPS 2.0 and has always been the part of our strategic plan. Starting with Nova-C, we turn a flight-proven lunar lander into a production line infrastructure platform with a known supply chain, reduced non-recurring costs, and greater schedule reliability. We are already applying that discipline. IM-3 entered vertical assembly during the quarter for its expected mission later this year. That mission is expected to launch our first lunar data relay satellite for NASA's Near Space Network Services contract, bringing our build and connect layers together in one mission architecture.

We also completed engine testing for IM-4, meeting that mission's requirements as well as engine requirements for IM-5, which was our CT-4 awarded during this first quarter. This is how flight heritage compounds: shared systems, repeatable hardware, and increasing production efficiency across the lunar delivery portfolio. The Moon-based portfolio from Ignition includes the need for lunar mobility. NASA's revised Lunar Terrain Vehicle Services approach moves beyond a single demonstration rover toward a phased procurement strategy for sustained surface operations. Intuitive Machines previously received a $30 million LTV award, and we have rapidly aligned our proposal with NASA's updated requirements through crewed and uncrewed mobility systems. These vehicles are designed around the principles Ignition now demands: speed, survivability, repeatable production, autonomous and crewed operations, and persistent communications and navigation across the Lunar South Pole environment.

LTV is important because mobility becomes operational infrastructure once humans and robotic systems are operating on the Moon for extended periods of time. We expect award decisions for the crewed and uncrewed LTVs in the coming weeks. NASA's Ignition also extends beyond the lunar surface. Through the extensive work we performed on the Gateway's power and propulsion element, the most powerful solar electric propulsion spacecraft ever built, we are committed to NASA's vision of repurposing this incredible spacecraft to serve as the centerpiece of the U.S. flagship mission to Mars, the SR-1 Freedom nuclear electric propulsion element. This solar and nuclear propulsion element will fly to Mars and deliver the Skyfall payload to the surface, representing the boldest advanced propulsive mission ever attempted.

That gives our Build Segment another direct role in Ignition, delivering payloads to the moon and helping repurpose proven spaceflight hardware for the next phase of exploration to Mars. At the same time, Build is not a single market business. The same production engine supporting our lunar portfolio is also driving diversified growth across commercial and national security customers. On the commercial side, we're also executing across our IM 1300 series spacecraft line. SiriusXM-11 is complete and ready for transportation to the launch site, and EchoStar 25 on-orbit testing was successfully completed with expected handoff to the customer by the end of the month. In national security, we are delivering SDA Tranche 1, producing Tranche 2, and were awarded Tranche 3 in the first quarter.

We were also selected by U.S. Space Force Space Systems Command for the Andromeda $6.24 billion IDIQ, which we will compete to design and field next-generation space domain awareness capabilities in geosynchronous orbit. We also submitted an updated AMDT3 proposal for 18-45 spacecraft, of which the first 18 are expected to have an award decision in June. In addition, we were given authority to proceed while in final negotiations for two additional satellites for an undisclosed customer. We are also investing in our satellite production line to advance schedules and inventory of upcoming campaigns, including NSNS, Near Space Network Services contract, the FCC C-band clearing, and the TDRSS-related opportunities. That's Tracking Data Relay Satellite Services opportunities. For the 1300 series satellite, we are enhancing digital processor capabilities that will enable our satellites to be reconfigured on orbit.

That expands the addressable market from fixed-purpose spacecraft to move to more flexible software-defined mission architectures with satellites that serve multiple customers. We intend to bring our new space prime culture into the reconfigurable satellite marketplace. Moving on, the next layer is connect. As build scales physical infrastructure, connect makes the infrastructure operational. As mentioned, NASA Ignition significantly increases the expected cadence of missions to and around the Moon. That cadence requires persistent communications, navigation, data transport, and control. In other words, Ignition validates the market we've been building toward through our lunar data transmission strategy and Near Space Network Services contract. That is why we believe our agreement to acquire Goonhilly Earth Station Ltd and its U.S.-based subsidiary, COMSAT, is so strategically important. Together, Goonhilly and COMSAT will expand our global ground station capacity across the United Kingdom and the United States.

It'll add deep space-qualified assets and strengthen our ability to offer customers an integrated and reliable space-to-ground network for communications, data relay, and position navigation and timing. We believe customers want less friction in their mission architecture. They want a single, resilient, interoperable network that can help them communicate with, navigate, and control spacecraft across low Earth orbit, lunar orbit, and cislunar environments. With Goonhilly, we are expanding our ability to provide that service now and scale it in parallel with demand. Subject to customary closing conditions, including the receipt of applicable regulatory approvals, this acquisition is expected to close in the third quarter. Sustained lunar operations will require a reliable network infrastructure capable of supporting Artemis international missions, commercial lunar operators, and national security cislunar activity.

We are already seeing the architecture come together as we continue to work towards our first lunar relay satellite, Altus-1, expected to launch with IM-3. Our satellite production team is completing structural design and moving into manufacturing the satellite bus frame internally. In the coming weeks, we expect to begin an integration of flight hardware. We also completed Artemis II tracking, further validating our interoperability with the Artemis program ahead of Artemis III and Artemis IV. Long term, we believe the value of the infrastructure model begins to compound as we operate. It is the transition from individual missions and hardware deliveries toward persistent services, deeper customer relationships, and repeatable operational revenue. Ignition brings that future closer. A sustained moon base requires delivery, navigation, mobility, and communications.

It requires assets that can operate for long durations, mobility systems that support crewed and uncrewed activity, data services that guide surface operations, and navigation tools that help customers move safely and precisely across the lunar environment. That is why LTV matters beyond the initial vehicle build. Under NASA's revised approach, lunar mobility is becoming an operational service requirement. Once delivered, these vehicles are expected to support sustained surface activity through autonomy, teleoperations, traverse planning, communications, maintenance, and mission support. Today, we are already operating persistent lunar data services. Intuitive Machines continues to support NASA's Lunar Reconnaissance Orbiter and ShadowCam to provide imaging operations, data storage and analysis, and mission support around the moon. This strengthens our role as steward of one of the most comprehensive lunar data archives ever assembled.

Over the past 16 years, the LROC team has captured more than 2 million high-resolution images of the lunar surface in collaboration with NASA's Lunar Reconnaissance Orbiter team. Those images support terrain models, surface feature mapping, composition analysis, and landing site evaluation for Artemis and commercial lunar missions. When paired with our navigation expertise, high-resolution lunar imagery, and our upcoming lunar data relay satellite constellation, these archives can support orbital and surface navigation services for government and commercial exploration. While Operate is the long-term destination of our business model, we are already operating mission-critical lunar data systems today. Ignition increases the need for those systems. Our build and connect capabilities give us a path to expand them into recurring operational services across mobility, navigation, communications, and lunar logistics. The next phase of space economy will not be defined only by who reaches new destinations.

It will be defined by who can build the infrastructure, connect it reliably, and operate it at scale. Looking back this quarter, three things changed materially. First, Lanteris expanded our production scale and margin profile. Second, national security demand accelerated with SDA and Andromeda wins. Third, NASA's Ignition framework validated our strategy to build integrated lunar infrastructure and services. Intuitive Machines continues to evolve into a vertically integrated aerospace infrastructure and national security platform with expanding recurring service revenue. Quarter one was a record financial quarter demonstrated by integration across all our recent acquisitions. More importantly, it showed that this strategy is moving from thesis to execution. That is what Intuitive Machines is building. Now I'll turn it over to Pete for the financial review. Pete?

Thank you, Steve, and thanks to everyone joining us today. Q1 marked an inflection point for the company financially. We delivered record revenue, positive Adjusted EBITDA, and record backlog while closing on the Lanteris acquisition and continuing to invest in future infrastructure capabilities. We entered the quarter with strong growth and record backlog. We delivered a record $186.7 million in Q1 revenue, approximately 3x the first quarter of 2025. As a reminder, we closed the Lanteris acquisition on January 13th of this year. Therefore, reported Q1 revenue does not include 12 days of Lanteris, which was approximately $13 million in revenue. Revenue growth was driven by execution across satellite manufacturing, CLPS missions, OMES, and NSNS programs, with balanced contribution from commercial, civil, and national security customers.

We also exited the quarter with a record $1.1 billion backlog, supported by more than $400 million in new bookings, highlighted by SDA Tranche 3 in February and our fourth CLPS mission, CT-4, in March. This backlog provides strong multi-year visibility and reflects increasing demand across both civil and national security markets. Approximately 60%-65% of our backlog is expected to be revenue in 2026, and the remaining 35%-40% in 2027 and beyond. Looking ahead, we expect additional backlog growth from several large multi-year NASA and national security programs currently moving through the government procurement cycle, including Golden Dome initiatives, NASA's Lunar Terrain Vehicle, additional CLPS missions, as well as other NASA Project Ignition Moon infrastructure programs.

The quarter continued our margin expansion plan while also making strategic investments in the IM 1300 series program to grow market share in GEO. Gross profit increased to $30.1 million, up significantly from $6.7 million in the prior year. This improvement was driven by the growing contribution from our satellite business and the continued expansion of higher-margin service revenues, including NSNS. SG&A was $50.7 million in the quarter, which includes $20 million of acquisition-related transaction and integration costs, as well as $6.3 million for a share-based compensation grant tied to the Lanteris acquisition that will be expensed each quarter for the remainder of the year. The majority of these acquisition-related expenses are non-recurring. We expect quarterly SG&A to normalize materially as integration activities wind down.

Operating loss for the quarter was $39.2 million versus a loss of $10.1 million in the first quarter of 2025, driven by acquisition-related transaction integration costs, amortization, and continued investment in next-generation satellite capabilities. Research and development was $5.6 million in the quarter. These investments are focused on expanding our software-defined satellite architecture, increasing addressable market opportunities in GEO and cislunar communications, and supporting future high-margin infrastructure services. Q1 profitability was a record for the company, as Adjusted EBITDA was positive $2.7 million compared to negative $6.6 million last year, driven primarily by a higher-margin contribution from Lanteris, partially offset by growth investments I just mentioned. Positive Adjusted EBITDA in the quarter demonstrates the improving earnings power of the combined business as revenue scales, customer mix shifts, and operational efficiencies continue to improve.

Operating cash use was $54.8 million in the quarter. This included approximately $20 million of one-time acquisition transaction and integration costs and $5.6 million in R&D investments, which I mentioned earlier, as well as $2 million in additional inventory pre-buy at Lanteris ahead of a commercial opportunity we have later this year. Capital expenditures of $9.9 million was primarily for our NSNS satellite constellation, resulting in a negative free cash flow of $64.6 million, which again includes significant one-time costs. As a reminder, CapEx will continue to grow as we invest and build out our five satellite lunars constellation and ground segment. The timing of awards as well as incentive compensation also impacted cash in the first quarter. Free cash flow is expected to normalize throughout the year as we move past one-time acquisition-related costs and new awards start to come in.

We ended the quarter with $232 million in cash following the successful completion of the Lanteris acquisition and our $175 million capital raise earlier this year. As discussed on our last earnings call, $403 million of the cash was used in the quarter for the acquisition of Lanteris, along with additional post-close reconciliations that aligned with the $450 million cash position of the purchase price. As of May seventh, our total shares outstanding are 217 million, with 160.5 million shares of Class A and 56.6 million shares of Class C. Moving on to guidance. We are maintaining our revenue outlook range between $900 million-$1 billion.

Importantly, a significant portion of our expected $226 revenue is already supported by contract backlog, giving us strong visibility into our outlook as we await significant award decisions in the coming weeks. On the profitability side, we continue to expect positive Adjusted EBITDA for the full year. In summary, Q1 demonstrated continued revenue scale, improving profitability and growing strategic diversification as we invest in infrastructure capabilities designed to support long-term recurring revenue growth. With that, operator, we are now ready for questions.

Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad to join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Participants may ask one question and one follow-up during their turn and can just simply join the queue again after they have more questions. Thank you. Your first question comes from Griffin Boss from B. Riley Securities. Please go ahead.

Hi. Good morning. Thank you for taking my question. So great to see all the progress across the board. I was wondering if you could give some more detail on where you're at in the development stage for the Nebula orbital transfer vehicle? Is that in CDR or approaching it? Is this another platform that you envision you could leverage for, you know, future Andromeda task orders for GEO operations in, you know, in addition to actually building the satellites?

Good morning, Griffin. It's good to hear from you. Yes. OTV, orbital transfer vehicle, which is our Nebula, as we call it, has passed through CDR with the customer. We're awaiting phase III, which is a full-scale development and flight of that vehicle. We expect multiple copies of this orbital transfer vehicle in the future to support national security space in GEO and cislunar space, certainly. It's a very specific, high thrust, very capable cryogenic propulsive stage that can move into trajectories and orbits well out to 2,000,000 km.

Got it. Thanks, Steve. Appreciate it.

Your next question comes from Edison Yu from Deutsche Bank. Please go ahead.

Hey, good morning. Thanks for taking our questions. You mentioned orbital data center briefly, I think, earlier. There's clearly a lot of interest, I think, in the industry, and I think a couple companies in particular have been very vocal. How do you envision Lanteris potentially using its capabilities to take part in this endeavor?

Good morning, Edison. Intuitive Machines as a whole, as a combined company, has some incredible capabilities that we're thinking through as an offering for orbital data centers. The build portion of our company, the production, certainly the power propulsive element, the most highest power-generating spacecraft ever built, can be reproduced at 60,000 W. We're already thinking about, you know, 100 kW in terms of power generation. Our capabilities as a company, thinking about thermal management and managing the heat load of edge computing and the need for heat rejection in high speed computing orbital data centers is critical. As a space company, we have that skill to manage that.

If you think about connect and the network platform that we're building, the ground segment included with the data relay satellites, including the geosynchronous birds we can put into place. All of that, connect operation and the network segment services, bring not only a capability to build a data center, but actually to connect it and operate it like no other company can. We'll be looking for strategic partnerships in this area. We'll be looking for crystallizing our offerings in this area as we move forward. The future is pretty exciting when we're thinking about these new endeavors for the company.

Understood. Just to follow up on the financial side, is there any update on the contribution from Lanteris for the full year? If we just kind of use the run rate number that you gave, it seems to be around $400 million, but is that accurate?

We report as a single segment at this point. You know, with that, we've worked to integrate the company into one company. That's how we'll report. You won't see a distinction between Intuitive Machines and Lanteris. The data from 2025 has been published that gave you kind of the run rate in the past. Looking forward, you'll see the top line from Intuitive Machines.

Thank you.

Your next question comes from Andres Sheppard from Cantor Fitzgerald. Please go ahead.

Hey, guys. This is Andres. Congrats on the quarter, and thanks for taking our question. I just wanted to expand a little bit about the Andromeda IDIQ that was touched on a little bit earlier in the call. You know, given your selection as one of the awardees under that program, I was wondering maybe if you can discuss what capabilities differentiated the combined Intuitive Machines and Lanteris' platform in the selection process, maybe what the economics here look like, and how do you see the positioning of the company in space domain awareness over the next several years given this? Thank you.

Andres, good morning. Yes, the Andromeda procurement, that IDIQ, it was a combined company offering. Our ability to put things in orbit with precision through the acquisition of KinetX. That orbit determination and precision trajectory management definitely comes into space domain awareness and putting assets where you want them to be and knowing where they are. You combine that with the IM 1300 series bus, the production supply chain, the reliability of that bus over time. You think about the kinds of things that we do with satellite servicing, with robotics in space, gives us a very strong offering.

You know, the fact that we've already been out to the Moon, orbiting the Moon, landing on the Moon, flying those precision trajectories, getting into orbit with precision, all of that, feeds putting assets in space right where you need to be and the assets that are highly reliable. That was the offering, and that's what, they recognized, and I believe that's the reason we got the award we did.

Gotcha. Appreciate all the color, Steve. Maybe as a follow-up, with the announced acquisition of Goonhilly and COMSAT, which was a key focus on the call, I was wondering maybe can you explain how owning an additional ground station changes your ability to deliver the end-to-end space data services across lunar, cislunar, GEO, and other applications? How does that affect your capabilities and economics regarding your NSNS contract? Thank you.

Yeah, that's a good question. The Goonhilly Earth Station and its subsidiary, COMSAT, provide up to 44 communication dishes that can reach out to 2,000,000 km, which is the edge of deep space. This acquisition gives us the ability to set up, through Goonhilly, leadership of a global ground segment network and provide network segment services, and the particular APIs that are needed for scheduling for multiple customers. Having that in-house gives us the expertise to be able to integrate this global network that we're putting together on the ground here on Earth. It's a very strategic in terms of near space network and providing that service across the government and to commercial customers and international customers.

Being based in the U.K. gives us access to ESA as well as, what we have in the United States for NASA. All around, just a perfect fit. They're a very well-established team and incredibly competent, that's why we selected them.

Gotcha. Thanks for the color, and congrats again on the quarter, on the acquisition, and the progress. I'll pass it on.

Thank you.

Your next question comes from Austin Moeller from Canaccord Genuity. Please go ahead.

Just my first question. I understand Andromeda is a multi-vendor IDIQ, how many GEO Commsats do you expect to build for that program? Do you expect those satellites to have a replacement cycle after the 10-year performance period, just given they're in GEO?

Good morning, Austin. What we know so far is we're in essentially a design competition. The first part of this award is to come up with the design for a highly maneuverable geostationary orbit satellite. Highly maneuverable agile satellites is the direction that we see the GEO market going. This is a good entry point for us in national security space. Again, with our reliability, we build satellites that last 15 years in orbit very reliably and have a supply chain to feed that. Like I said earlier, we're not yet sure what the order book will look like after the designs are completed. I do believe it's multi-award in terms of the future satellite purchases. It won't just be one vendor.

They did increase the value over 10 years, up to $6.24 billion. We know there'll be multiple satellites and certainly anticipate a replacement cycle. I don't have any more specificity on the orders or the replacement cycle, as the designs aren't yet completed from the awardees.

Okay. Okay, are you able to comment on the RFP and bid process for the light version of LTV, and how the timing of how that's expected to elapse to contract awards this year and lead into a follow-on for a heavier or medium version?

During the NASA Ignition event, they restructured the task orders under the base contract for the three vendors that were awarded. They asked us to modify the LTV design to survive, to make it smaller, and survive a single year instead of the larger version, which would last 10 years. That risk was identified by the administrator as too big a first step, they wanted to give the vendor pool an opportunity to walk up on this autonomous capability, build a smaller, simpler version, lessen some of the crew requirements in terms of how to operate it with crew. They came out with a new task order for crewed and uncrewed version. We had to submit a proposal late April, I believe.

The award NASA has indicated would be on May 22nd, we believe. That's the latest we've heard for a crewed and uncrewed. There's an option to buy multiple versions of those. We'll see how the selection goes. There is a plan in the Moon Base to, which is, what, $30 billion over seven years moving forward, I believe it's seven years, to develop heavier and heavier cargo deliveries. We think that that might include multiple future awards of LTV, and they can be increasing capability also over this 15-year contract. We'll wait and see what the next task orders look like and are cautiously optimistic about the awards in May for LTV.

Very exciting. Looking forward to it. Thank you.

Thanks, Austin.

Your next question comes from Greg Pendy from Clear Street. Please go ahead.

Okay, thanks for taking my question. Can you just comment on maybe the competitive environment for the LTV? Has that changed? Are there more bidders now coming in from, say, where the landscape was at the end of 2025?

Yes. Good morning, Greg. The landscape remains the same. The initial contract, I believe it was a $4.6 billion contract, was awarded to three vendors. Each vendor received a design award that lasted one year to come up with an LTV design. We bid, the three of us vendors, bid on an LTV delivery and demonstration mission. That task order was restructured to bring a crewed and uncrewed version up to the Moon and last for a year versus 10 years. The same three vendors that won the initial award are the ones that are in the competition for the modified LTV award coming up here at the end of May. The landscape looks the same in this competitive environment with no additional bidders added to the vendor pool.

Great. If I just get one more financially. The CapEx, that was around $9 million tied to the satellite. Should that roughly round out to $30 million for the year?

Pete, why don't you take that one?

Sure. I think we're gonna see as we start building out, we have one we're flying this year. We're gonna fly two more next year and two more the year after that. I think you'll see the values grow a little bit to account for the increased volume in satellite build going forward.

Got it. Thanks.

Your next question comes from Jonathan Siegmann from Stifel. Please go ahead.

Hey, good morning. Thanks for taking my question, and congratulations on the progress.

Thank you.

We were excited about the new acquisition. That's long history there. Can you talk a little bit about how that deal came together, and any more details you can share on how we can model that moving forward in the second half? Thank you.

Yes. In February 2025, we put together an M&A strategy of the kind of capabilities we wanted to add to the company. You saw us now with, this is the third. KinetX was the first, Lanteris was the second, and Goonhilly was the third. This capability, we've had a strategic partnership with Goonhilly for a number of years now. They were instrumental, if you recall, in Mission 1. When we sat quietly in the control room and we were waiting for the heartbeat of Odysseus, our Nova-C lander on the South Pole, it was Goonhilly who acquired the signal from our radios on the South Pole of the Moon.

They have been instrumental partners with us in our success to the Moon, and it only made sense to broaden our relationship and integrate it and set them up as the leader of our global ground segment. We expect them to continue, and we'll continue to grow and feed the market that we've captured in cislunar space with the Near Space Network contract. It's a growth opportunity for Goonhilly, and it's strengthening our capabilities in Intuitive Machines.

That's great. Maybe I'll just ask another one on the backlog timing. When we compare what you're disclosing now as of March 31st with what you disclosed previously as of February 28th, and the backlog increase, it looks like the incremental awards you got added to backlog are actually additive to 2026. It looks like it's near term work. Is that the right way to look at it? Or is there any other color we can take on how the quarterly cadence for the rest of the year might shape up? Thank you.

Yeah. I would say that, they are primarily you see a lot of near term. I'd say, you know, over the next 24 months, a lot of that revenue hits on some of the near term things like the tranche deliveries. CT-4 is a little bit further out. We talked about 60%-65% of that backlog would be seen this year. There is also additional awards we're expecting, which would also bring in revenue in the second half of the year. That's what we're looking at in terms of backlog conversion as well as potential opportunities on revenue.

One other thing I'd add to the, to the future potential awards that Pete mentioned is that we did talk about a flurry of procurements that came out as a result of the NASA Ignition event. We talked about the LTV late May award potential. There's another CLPS mission called CS-8, which could be multiple lander awards in a single procurement. We expect that in mid-June or so. Also, we're working on proposal for the TDRSS Tracking and Data Relay Satellite System, which is draft RFP is out. We're working on a proposal. The other one is the C-band clearing at the geosynchronous orbit there. They're retiring some of the upper portion of the C-band frequency. There'll be some Ka-band satellites to bid on.

Those awards will be happening over the summer, we believe, commercially. Quite a bit of catalysts coming up in the future on future awards that'll add to the backlog, we hope.

Busy business development team. Thank you again.

Yeah.

Next question comes from Michael Leshock from KeyBanc Capital Markets. Please go ahead.

Hey, good morning. I just wanted to follow up on CLPS and the NASA's Ignition program calling for a potential monthly lunar cadence, potentially 30 or so landings before the end of the decade. You just talked about CS-8 in mid-June. Do you expect to start seeing these contracts and revenue come through for these missions in the very near term? Just given how you typically begin recognizing revenue a few years ahead of the mission, are these coming in, you know, weeks or months, or could they potentially be recognized a bit closer to the mission than you would typically recognize them historically?

Thanks for the question. What we see is a request to build in 24 months. We put in a CS-8 proposal, which could select one, two, or three lunar landers out of a single proposal and multiple awards. We've scaled our production, leveraging the production capability of Lanteris, coupled with Intuitive Machines, gives us the ability to produce multiple landers in 24-month cycles at a time in parallel. That will be near term. The longer term version of this is called CLPS 2.0, that's the next 10 years of CLPS. I think they've set aside $6 billion for CLPS 2.0, where we move towards heavier and heavier cargo deliveries to the moon.

You'll see our Nova-D and Super Nova variants of our lander come into play here in the coming years. We expect that procurement to be later in the year. It's the draft I think is in work, but the award will be maybe in the November timeframe. That'll hit in subsequent years while we're still finishing out the CLPS 1.0 budget bucket.

Great. Is there anything that needs to happen to scale the business further from a production standpoint to meet these, you know, exponentially higher demand levels for landers? Is that going on right now? You know, how quickly can you make one? Thanks.

Yeah, we've looked hard at the process. We are in the process of streamlining the production. One of the things that's very competitive from an Intuitive Machines standpoint is the strength of the supply chain. The number of spacecraft that we're involved in building is exercises the supply chain in a very positive way. We can get some benefits on delivery schedules as a result of the volume that runs through the supply chain. That's really kind of how we've been looking at it. Plus improving the production techniques and the ground support equipment that allows us to process multiple vehicles at the same time.

You know, with our current expansion here in Houston, doubling our capacity in facilities over the past two years, and then, out at Lanteris with over 600,000 sq ft of production space, really does allow us to step up quickly and respond to the needs of the customer.

Great. Thank you.

Thank you.

Your next question comes from Jeff Van Rhee from Craig-Hallum Capital Group. Please go ahead.

Hey, this is Daniel on for Jeff. Good morning, Steve, Pete. Most of my questions here have been asked. This AMDT3 proposal for 18-45 spacecraft, I don't think I've seen that referenced before. T3, I don't know, is that another way of referencing the Tranche Three Tracking Layer? If you could expand on what that opportunity is that you're anticipating there.

The SDA Tranche 3 tracking layer is what you've been hearing about. You've been hearing about a transport layer, and you've been hearing about a tracking layer. Independent of that, there's another series of tracking satellites that are being requested that is not part of the tracking layer associated with the Space Development Agency.

Okay. Is that something where you would potentially go prime on that and deliver that directly, or this is something where you're expecting, you know, L3Harris to potentially be bidding on that and then you could build the buses for that again? What's the opportunity there?

Yeah, this is again, all the great work that we've done, together between, Intuitive Machines or Lanteris and L3Harris. This is a continuation of that relationship and extending that relationship even further.

Okay. That's helpful. Thanks, Steve.

Your next question comes from Alex Preston from Bank of America. Please go ahead.

Hey, good morning. Thank you for taking the question. I just wanted to go back to Goonhilly. Maybe beyond NSNS, I'm curious if or where you might see synergies on future contract awards or, you know, if there are broadly other opportunities or capabilities that you see yourself as more capable of bidding for now than previously with that.

Let me think about that. What we really had focused on was get the ground segment in our space-to-ground network established and built out, as someone said on the call, as a platform. How you use that platform is really the growth opportunity anchored by the Near Space Network Services contract, which is 10 years, $4.8 billion, gives us a clear market potential there, and that is only expected to grow across other government agencies and commercially. The addition alone was to help us with the ground segment for the Near Space Network Services. Using that network over time is really where we're gonna go together with world-class leadership in space-to-ground communications.

Currently, we see the revenue of Goonhilly Earth Station around $14 million annually. It's not that significant, but coupled with Intuitive Machines market, we see incredible growth.

Yeah. The other aspect of Goonhilly is, as Steve mentioned, it's put over 44 dishes, both in the U.K. and in the U.S. Those are not only large dishes that can talk to the moon, but they're dishes that actually can also talk to LEO and GEO. As we start putting together full service opportunities like TDRSS, it comes into play as to how we integrate that ground network with our service offering as we go forward.

I guess the other point, as I'm thinking through the question, if you recall, I believe last quarter or in February, I spoke about a strategic partnership with Leonardo and Telespazio to dovetail the Moonlight constellation with the Intuitive Machines data relay constellation. The work where we combine the ESA work or European work with U.S. work, Goonhilly is a great bridge for that relationship.

Got it. Thanks. Just to follow up, you mentioned sort of more broadly on the M&A roadmap, this is sort of the latest in your sort of plan. Where else are you seeing opportunities for M&A? Is it still sort of bringing in key systems more vertically, or are you thinking about horizontal space exposure opportunities? Just kind of curious if you could provide any update there on where you're looking at opportunities?

We continue the effort to look at M&A opportunistically. We laid out a plan and executed against the plan from February 25 till today. Taking another hard look. We'll look at things as where the market steers us. I talked a little bit about orbital data centers, talking with strategic partners. We'll think about strategic financing. We'll think about M&A when it comes to those offerings as those crystallize.

Great. Thank you for taking the questions. Appreciate the color.

Before we proceed, again, if you want to join the queue, simply press star one. Your next question comes from Suji Desilva from ROTH Capital. Please go ahead.

Hi, Steve. Hi, Pete. Just trying to dig into the Lanteris' opportunity now within Intuitive Machines. The demand for agile spacecraft sounds very comprehensible in the government defense world. I'm wondering how that might extend into the commercial world, that feature, that capability of these spacecraft, or whether it's really more of a defense play.

Suji, good morning. I think it's a combination of defense or national security space in RG-XX and other programs that are coming for highly maneuverable GEO satellite birds. If you recall, we spent a lot of time over the past couple of years talking about satellite servicing and the OSAM mission, the on-orbit satellite servicing and manufacturing. That ability to couple robotics with a highly reliable bus. Recall that that OSAM bus was built by Maxar at the time, which is Lanteris and now Intuitive Machines. We have an inherent capability to do satellite servicing robotically. As that market develops in the future, that'll be a potential commercial entry point for us that leverages the same kind of technology that we're talking about here in RG-XX.

Okay. Great. Very helpful, Steve. Then maybe, you know, I remember from the first few missions, the challenges, obviously. Then I am wondering if you could draw a line from that to the future where you have Goonhilly in-house versus a partner and these dishes, and also have lunar satellites orbiting, helping. Just obviously, nothing is certain with the lunar landing, but, you know, the increased confidence versus, you know, before and after would be very helpful to understand.

We've done a lot of work with Goonhilly and others, including the Deep Space Network for NASA, to improve our ability to perform orbit determination to get into lunar orbit precisely. We've had the acquisition of KinetX, again, who are masters at flying trajectories. You know, they've done a mission to every planet in the solar system except for Neptune, I believe. Very exotic trajectories and exotic navigation techniques to get to where they need to be. You couple that with a world-class ground station like Goonhilly Earth Station, you now can really synchronize and use that as a test bed to just test out the new technologies for ground segment communications to space.

You have a gold standard that you can develop capabilities that'll help us integrate in a more uniform way the global network that we're putting together on the ground. I really use it as a benchmark and a gold standard site to continuously improve on ground segment communications and navigation.

All right. Appreciate that, Steve. Thank you.

Thank you, Suji.

There are no further questions at this time. That concludes the Q&A session of this call. I'll hand it back over to Steve Altemus for any closing remarks. Please go ahead.

Well, thank you everyone for your questions today. I appreciate them and give me an opportunity to answer them. As you heard, quarter one was strong start to the year and a record quarter for Intuitive Machines. We look forward to continued execution and award decisions in the coming weeks. Thank you very much.

Ladies and gentlemen, thank you all for joining, and that concludes today's conference call. All participants may now disconnect. Thank you.

Ladies and gentlemen, thank you for standing by, and welcome to the Intuitive Machines, Inc. Fourth Quarter and Full Year 2025 Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1 again. Please be advised that today's conference is being recorded. I will now turn the conference over to Stephen Zhang, Head of Investor Relations. Please go ahead.

Good morning. Welcome to the Intuitive Machines, Inc. fourth quarter and full year 2025 earnings call. Chief Executive Officer, Stephen Altemus, and Chief Financial Officer, Peter McGrath, are leading the call today. Before we begin, please note that some of the information discussed during today's call will consist of forward-looking statements, setting forth our current expectations with respect to the future of our business, the economy, and other events. The company's actual results could differ materially from those indicated in any forward-looking statements due to many factors. These factors are described under forward-looking statements in the company's earnings press release and the company's most recent 10-Ks and 10-Qs filed with the SEC. We do not undertake any obligation to update forward-looking statements. We also expect to discuss certain financial measures and information that are non-GAAP measures as defined in the applicable SEC rules and regulations. Reconciliations to the company's GAAP measures are included in the earnings release filed on Form 8-Ks. Finally, we posted an earnings call presentation to our website which provides additional context on our operational and financial performance. You can find this presentation on our investor relations page at intuitivemachines.com/investors. I will now turn the call over to Stephen Altemus.

Good morning, everyone. 2025 was a transformational year for Intuitive Machines, Inc. We began with a focus on execution and growth. As we look back and reflect we completed our second lunar mission, expanded into national security space programs, closed the acquisition of Kinetics Aerospace, and announced the acquisition of Lantaris Space Systems. Looking forward, these acquisitions significantly expand our scale, addressable market, and growth opportunities. As a result, we expect 2026 revenue to approach $1 billion, nearly a 5x increase from 2025. Our combined portfolio has a diversified revenue mix with approximately 40% commercial business, 40% civil space, and 20% national security customers, evolving towards a balanced portfolio across all three customer bases. Today, the United States' strategic importance of the moon continues to intensify with the President's executive order to lead the world in space exploration and return Americans to the moon by 2028. To do so, NASA is currently preparing for Artemis II while reformulating Artemis III. In parallel, the agency has increased the cadence of robotic and human missions going to the moon to compete with China. Our strategy will continue to be moon-first infrastructure, and we are focused on growing the business across all space domains: LEO, GEO, cislunar, and out to Mars and beyond. Through our early missions, we established the technical foundation of the company with a mission-driven model where revenue was tied to a concentrated customer base and mission outcomes were binary, like delivering NASA payloads to the lunar surface. These early delivery missions under CLPS established one of the first commercial pathways to the moon and we believe give us a competitive advantage to future growth in the space domain. Our mission built the operational expertise required for long-duration, persistent, infrastructure systems that will support sustained surface operations. At the same time, Lantaris Space Systems was operating on a larger scale, more established spacecraft platform market, with its 300 series, 500 series, and 1,300 series satellite systems which operate in more mature, expansive markets with consistent and predictable revenue generation. Historically, the Lantaris model was straightforward: build reliable, cost-effective spacecraft to a customer's specifications and hand it over for operational life which should exceed 10 years. Bringing these capabilities together, both Intuitive Machines, Inc. and Lantaris, creates a fundamentally different company. Today, we are focused on taking proven production platforms and applying them to new growth markets as a prime operator. Our operating model is organized around three integrated capabilities. They are to build, to connect, and to operate space infrastructure. Build is where we design, manufacture, and deliver spacecraft, landers, satellites, surface systems, propulsion and avionic systems, for government and commercial customers. This represents our business today. Starting later this year with IM-3 or Mission 3 and our first lunar data relay satellite, our connect capability integrates deployed assets into communications, navigation, command, control, and data relay networks that enable persistent connectivity. Our Near Space Network Services contract, which includes data services, navigation, and timing capabilities, accelerates how quickly we can reach our third capability, which is to operate. This is where we provide mission operations, hosted payload services, and other infrastructure-based offerings like the Lunar Terrain Vehicle services. As we look at these three capabilities—build, connect, operate—each progresses the business towards higher-margin services, anchored by multibillion-dollar recurring revenue programs like LCBS, the TDRS service, Mars Telecom Network service, and Fission Surface Power. With the combined power of Intuitive Machines, Inc. and Lantaris, the company can now pursue opportunities as a prime for defense programs, proliferated network infrastructure, and other infrastructure operations with higher procurement win probabilities, driven by our scale, our technologies, and capabilities. Our current execution is grounded in the work our teams are building today for LEO, GEO, and lunar domains. In low Earth orbit, our team continues to execute under the Space Development Agency's proliferated warfighter space architecture. Deliveries of the final 300 series satellite buses under Tranche 1 Tracking Layer are underway, with launch expected later this year. Work also continues on Tranche 2 and the recently awarded Tranche 3 Tracking Layer programs, which support proliferated constellations designed to detect and track missile launches. The 500 series platform, currently supporting high-resolution Earth observation for Vantor, formerly Maxar Intelligence, is part of a NASA-selected team for the Earth Dynamics Geodetic Explorer mission called EDGE. This award demonstrates how the 500 series spacecraft design can support commercial imaging, science missions, and national security applications. Moving outward to geostationary orbit, the 1,300 series spacecraft is the industry's most proven GEO communications platform. Operating companies rely on these satellites in geostationary orbit as part of a multibillion-dollar communications market. Over the last 40 years, Lantaris has served customers as the world leader in geocommunication satellites, with over 3,000 aggregate years on orbit with 99.99% operational availability. The 1,300 series production line includes EchoStar, DISH Network, and two SiriusXM satellites. EchoStar 25 successfully launched last week. Our team is currently performing the satellite's on-orbit system checks before starting high-power direct-to-home broadcast services across North America. SiriusXM 11 is undergoing final performance and integration testing with shipment expected in the second quarter. Production of SiriusXM 12 continues in parallel. Satellites in this class are designed to operate for more than a decade and support services such as broadband connectivity, media distribution, aviation communications, and enterprise networks on Earth. Based on the 1,300 series, and designed for NASA's Lunar Gateway Station, this first-of-a-kind Power and Propulsion Element is the highest-powered solar electric propulsion spacecraft ever built. NASA has invested over $1 billion in the PPE and the system is nearly complete. In January, the agency announced the PPE successful power-up confirming its ability to provide power, high-rate communications, attitude control, and the ability to maintain and maneuver between orbits. In the second quarter, we will integrate the spacecraft's rollout solar arrays in preparation for final delivery to NASA. We have the ability to leverage the spacecraft design for future applications. At our Texas headquarters, with new expertise provided from Lantaris, we are building our first lunar data relay satellite and expect that satellite to launch with our IM-3 mission, which we believe will start the operational task orders portion of the $4.82 billion Near Space Network Services contract. We expect this first of five satellites to support future lunar missions which are all progressing through testing and integration in preparation for our next two contracted delivery missions. IM-3 is progressing well, as all robotic mechanisms from our Maryland facility delivered in the fourth quarter. Now our team is working on lander assembly, integration, and test for the mission later this year. IM-4 remains on track for 2027, and the mission plan includes flying two additional lunar data relay satellites to open more connect services under the Near Space Network Services contract and recognize higher-margin revenue servicing, specifically NASA's Artemis IV human landing mission. The lunar data relay satellites are our first connected space infrastructure assets. They are connected to Earth by our partners' global ground stations. Collectively, this forms a secure space data network, a communications navigation architecture we intend to offer as a subscription data service with recurring revenue in conjunction with pay-by-the-minute operations. We believe most of the market understands networks being provided for Earth from space, whether it is internet, satellite radio, or broadband. It is important to understand the distinction, however. We are creating a network for space from space—an internet for the solar system. Today, NASA provides that capability through the Deep Space Network. Spacecraft operators request time on that network and pay for access to communicate with their deep space missions. Deep space communications bandwidth, though, is limited and is multiple times oversubscribed. For example, NASA has indicated that live video from Artemis II will likely be transmitted at a low resolution. Intuitive Machines, Inc. is working to solve that challenge. Higher data rates require our relay satellites and additional communications infrastructure operating between the moon and Earth. On Earth, Intuitive Machines, Inc. is expanding its network coverage, adding a new ground station partnership in Australia, and working to upgrade additional partner facilities around the world. The Australian just successfully downlinked data from the James Webb Space Telescope, confirming that it can operate within NASA's existing network and reduce its bandwidth constraints. For space, Intuitive Machines, Inc. continues to evolve globally, signing a strategic agreement with Leonardo and Telespazio to connect our lunar relay systems together and support European exploration missions. The next phase for the company is to operate the built and connected spacecraft as long-term infrastructure. The immediate opportunity for that model is already captured in the Near Space Network Services contract. While the always-on network provides subscription-based data connection, additional value comes from operating hosted payloads and sensors to create new markets for science, reconnaissance, and exploration. The near-term catalyst for higher-margin infrastructure operations is surface mobility. The Lunar Terrain Vehicle program is structured as a long-duration service where the provider builds, delivers, and operates the vehicle on the surface over many years. When selected, the vehicle will become a mobility infrastructure asset on the moon connected to our space data network generating recurring revenue for NASA and commercial customers over time. Moving forward, the company sees growth opportunities from an operator's perspective. These opportunities include tracking and data relay satellite services, Mars Telecom Network Services, and the Missile Defense Shield program, while also adapting the 1,300 series spacecraft class for Space Force for highly maneuverable satellites and evolving our satellite platforms for applications in the burgeoning orbital data center market. To support these growth opportunities, last month we completed a $175 million strategic equity investment to advance communications data processing networks, including extending flight-proven satellite platforms. Intuitive Machines, Inc. intends to invest in expanding its Near Space Network Service and establish a solar system internet. Through investments in the Lantaris platforms, and specifically the 1,300 series, the company believes it can grow market share in geostationary orbit, expand capability around the moon, extend capability to Mars, and support emerging high-power on-orbit data processing and edge computing. I will now turn the call over to Peter McGrath for the financial results.

Thank you, Steve. Thanks to everyone joining us today. As Steve mentioned, we made strategic moves last year to transform Intuitive Machines, Inc. to become the next-generation space prime, providing delivery, data, and infrastructure services, emphasizing growth in communications, navigation, and space data network for defense, civil, and commercial markets. The decision to acquire Lantaris positions the company for sustainable long-term growth. As a reminder, we closed the Lantaris acquisition on January 13. Therefore, the 2025 financials do not include Lantaris. Q4 financials do include the impact of Kinetics, which was completed on October 1. Before reviewing the quarter, I want to highlight earlier this month we were awarded a multiyear contract as part of the Space Development Agency's Tranche 3 Tracking Layer, which expands our roles supporting the national security space architecture. This award reinforces our diversification and market expansion into national security programs, supporting sustained long-term growth in backlog and revenue. Back to the quarter, Q4 2025 revenue was $44.8 million, driven primarily by CLPS, ALMS, and NSNS execution. While Q4 revenue reflected program timing and government budget delays, we exited the year with strong contract momentum and major awards already announced in early 2026. Since year end, we were awarded the SDA Tranche 3, as referenced, and we expect decisions on large programs, including Lunar Terrain Vehicle services and NASA's CLPS CT-4 mission. O&M revenue was $14.7 million in the quarter. For the year, excluding revenue was up approximately 65% year over year, driven by continued growth across all key programs such as CLPS, the LTV work we were doing, and NSNS. Q4 gross margin came in strong at $8.5 million, which represents a 19% positive gross margin. The gross margin improvement was driven primarily by higher-margin services revenue such as NSNS as well as continued cost reductions across our fixed-price contracts. Q4 was also our first quarter with Kinetics, and as previously discussed, Kinetics historically generates approximately 14% positive EBITDA and even higher gross margins. SG&A was $40.2 million in the quarter, including $10.8 million of acquisition-related transaction costs associated with the Lantaris acquisition. We also increased IRAD investment to align with our long-term growth strategy. Excluding these costs, underlying operating expenses remain consistent with prior quarters as we continued investing in program execution and infrastructure to support growth. Operating loss for the quarter was $33.1 million versus a loss of $13.4 million in 2024, driven primarily by acquisition-related transaction expenses as well as continued investment in program execution and infrastructure to support the company's growth. Adjusted EBITDA was negative $19.1 million in the quarter, compared to negative $11.2 million last year, driven primarily by growth investments I just mentioned. Operating cash used was $7.3 million in the quarter, with capital expenditures of $15.6 million, primarily for our first NSNS satellite, resulting in negative free cash flow of $22.9 million in the quarter. For the year, free cash flow was negative $56 million, an $11.7 million improvement versus 2024. Free cash flow improved year over year despite higher capital investment in the NSNS constellation. This improvement was driven by $43.3 million less operating cash used, partially offset by a $31.5 million increase in capital expenditures. We ended the year with a cash balance of $583 million, which includes $15 million of cash outflow for the acquisition of Kinetics. Since year end, $430 million of the cash was used for the acquisition of Lantaris, along with additional post-close reconciliations that align with the $450 million cash portion of the purchase price. We have a transition service agreement in place that will continue through the third quarter. As Steve mentioned, in February we completed a $175 million capital raise anchored by institutional investors to strengthen the company's balance sheet and provide capital to support the continued execution of our growth strategy. Following this capital raise and outflows related to the Lantaris acquisition, our cash balance as of February was $272 million. As a reminder, this includes additional acquisition-related transaction and integration costs, as well as the start of some investment costs we outlined as part of our recent capital raise. Following the acquisition and our recent capital raise, we believe we have sufficient liquidity to fund current operations while continuing to invest in strategic growth initiatives. Backlog at year end was $213.1 million, compared to $235.9 million in 2025, reflecting the timing of several large program awards that were delayed by the government shutdown and appropriations process. Approximately 60% to 65% of our backlog is expected to be revenue in 2026 and the remaining 35% to 40% in 2027 and beyond. Q4 backlog includes $22 million of new bookings, driven primarily by NSNS, as the fourth quarter is typically where we see the largest re-up in task orders for the following year. As of February month end, our combined company backlog is estimated at $943 million, which includes the recent award SDA Tranche 3 Tracking Layer contract, which was originally expected in Q4, but does not yet include key upcoming awards such as the next CLPS mission, LTV, Golden Dawn, and other commercial satellites. Looking ahead, we expect additional backlog growth for several large multiyear NASA and national security programs currently moving through the government procurement cycle, including NASA's lunar terrain vehicle services, the next CLPS mission, Golden Dawn Initiatives, and the next phase of Fission Surface Power and orbital transfer vehicle programs. We will also continue to bid on large GEO bus via the 1,300 series platform. Historically, these were roughly one to two new satellite buses per year, which provides a solid base for our commercial market. As part of our growth strategy, we are making investments to increase flexibility of the satellite on orbit through the introduction of digital processors, which we believe increases future market share opportunities. This, along with other investments in the 1,300 series satellite, will expand our total addressable market. As of March 11, our total shares outstanding are 216.8 million, with 159.4 million shares of Class A and 57.4 million shares of Class C. This includes the shares issued for both the Lantaris acquisition as well as the $175 million capital raise. Moving on to guidance, 2026 will be a transformational and record year for the company. With the acquisition of Lantaris completed in January, Intuitive Machines, Inc. enters 2026 as a fundamentally stronger, more competitive, and more diversified space infrastructure company. Intuitive Machines, Inc. now operates across all space domains—from lunar services to proliferated national security space architectures and commercial GEO platforms—which, when combined, significantly expands both our addressable market and revenue base. For 2026, we expect revenue in the range of $900 million to $1 billion, representing a transformational step up in scale for the company. Importantly, roughly two-thirds of our expected 2026 revenue is already supported by contracted backlog, giving us strong visibility into our outlook. On the profitability side, we expect continued margin improvement and are targeting a positive adjusted EBITDA for the full year. The primary drivers are scale from the Lantaris acquisition, expected growth in higher-margin service revenue such as NSNS and navigation services, and continued operational efficiencies across our fixed-price contracts. Since closing the Lantaris acquisition on January 13, we continue to finalize the combined company pro forma financial presentation and expect to provide that additional detail shortly. Before we get to Q&A, I want to take a moment to highlight our strong financial performance in 2025. We were able to grow the top line across all our key programs while expanding gross margins, offsetting the impacts of ALMS and the government shutdown. On the cash side, we continue the trend of reducing free cash flow burn year over year while simultaneously investing in growth and CapEx for our NSNS constellation. Adjusted EBITDA profitability and positive free cash flow continues to be in sight, supported by higher-margin service growth. To accelerate that growth, we made very strategic and targeted acquisitions this year. These acquisitions have further diversified the business to more evenly split between civil, defense, and commercial. With the acquisition of Lantaris and strong momentum across national security, civil, and commercial markets, Intuitive Machines, Inc. has entered 2026 as a more competitive and diversified space infrastructure company with size and scale. We believe this positions us to deliver record revenue, achieve positive adjusted EBITDA, and continue scaling our role in the emerging space economy. With that, operator, we are now ready for questions.

Thank you. And a quick reminder before we start the Q&A, please limit yourself to one question only. Use your keypad to raise your hand. And if you would like to withdraw your question or your question has been answered, please press 1 again. We will now open for questions. Our first question comes from Josh Sullivan from JonesTrading. Please go ahead.

Hey, good morning. I just wanted to key in on the Lantaris integration. Where are you ahead of schedule? Where are the hurdles, and what has been the customer response?

The integration of Lantaris with Intuitive Machines, Inc. is going very well, Josh. The customers are all excited about the opportunities that the business combination creates. We are working on a transition service agreement with Vantor, the parent, to carve out things like the IT, the accounting system, the payroll system, and make sure that those systems are fully up and running so that the business can stand alone and be merged with Intuitive Machines, Inc. All that is going well ahead of schedule. There was a plan for a nine-month period of time for that transition to occur, and, as I said, we are well ahead of schedule. We are really excited about the combination and what the future holds for us.

Great. Thank you for the time. Thank you.

Our next question comes from the line of Suji DeSilva from ROTH Capital. Please go ahead.

Good morning. You talked about national security growing in the mix and trying to make it sort of a third, third, a third across the company. Can you talk about the key programs, if you have won them or if you have in the pipeline, to help increase the national security in the mix?

We talked about the Space Development Agency's Tracking Layer Tranche 1, 2, and 3. Tranche 3 is the latest award with L3Harris for 18 satellites. We just announced that here recently, and there is a potential to upsize those satellites. In addition, we have proposals in for Golden Dome to build 300 series satellites for those programs. In addition, we have another orbital transfer vehicle development undergoing. We have been through Phase 1 and Phase 2, and we are expecting award or advancement to Phase 3. We have been through critical design review, and now we are headed to the next phase to full development of that transfer vehicle. We are very excited about the potential here in national security space and some of the developments we are doing and the proposals we have in the mix.

Thanks, Steve. And then on calendar 2026, your revenue guidance there—talk about the linearity perhaps, Pete, first half versus second half, given you have backlog visibility. And what would drive potential 2026 upside in your guide? And just maybe you can touch on LTV and where they are in the program selection process.

I will start the last one. Our understanding is they are ready to make an award decision on LTV. It is just timing. We are waiting to hear when they actually make that award. In terms of the revenue guidance, I would say it is pretty level throughout the year. Just note that when we talk about integrating Lantaris into our financials, the acquisition was closed on January 13, so we lose about half a month of January in revenue from them. You will have that one anomaly probably in January, but beyond that you will see a pretty steady state through the year.

And in terms of upside, Suji, against the guidance there is potential, as the Artemis program reformulation occurs. You have seen the Administrator call for acceleration of some of the Artemis missions. Part of our Near Space Network contract—if they want to restructure that and accelerate that—there might be some upside this year associated with acceleration to support the near-term Artemis missions.

Okay. Thanks. Congrats on the progress.

Thank you.

Our next question comes from the line of Andres Sheppard from Cantor Fitzgerald. Please go ahead.

Hey, everyone. Thanks for taking our questions and congratulations on a great quarter and on the acquisition. I will limit myself to one question just to be respectful of my peers. I will maybe ask a two-part question, if I may. Steve, you touched on this in your prepared remarks a little bit. Maybe for those that are less familiar with Lantaris, at a high level, what are the things that Intuitive Machines, Inc. can do now that maybe it could not do previously? And the second part of the question coming back to the LTV: it looks like we are awaiting an imminent decision. Do we have a sense of how that decision might be determined? In other words, are we expecting perhaps two award winners, or a primary and backup? Just a little more color there on the latest. Thank you.

Andres, good morning. Concerning the LTV in particular, Pete mentioned that briefly. I think the Artemis II mission and the reformulation of Artemis III, IV, V, and VI was the priority for the agency, and now you will see—we expect you will see—follow-on procurements at the next level coming out here shortly. We have been waiting. As you know, we believe the decision has been made. There was an opportunity; the bid asked for one and a half awards, which means one primary award and a half of an award to have a hot backup contract, if you will. We will wait and see. There is a potential—the agency likes to have competition—so there is a potential there will be two full awards. We will just have to wait and see. But we feel it is imminent. That is all the words we are getting at this point. We will be standing by and waiting for the good news. Now for the other question—what can I do now with Lantaris? It is very exciting. We think about the series of satellite buses, the production line, the capabilities that that company has, the high reliability that they have with their satellites in orbit. We take that capability and we add it to our data relay constellation. Providing satellites in and around the moon gives us also an opportunity to repackage the Power and Propulsion Element and offer that in different markets, whether it is a comm node around the moon, a data center kind of construct, or nuclear propulsion. There are a lot of different things that can be done—versatility—by putting the innovation that Intuitive Machines, Inc. brings to all the markets with that reliable, production, high-quality satellites. We are very excited to get moving on the growth initiatives across commercial, civil, and national security space.

I will add we have already submitted two proposals post closing that we probably would not have submitted if we had not had a combined company.

I see. Wonderful. Excellent. Well, thank you, Steve. Thank you, Pete. Congrats again on the quarter. We will pass it on.

Thank you.

Our next question comes from the line of Austin Moeller from Canaccord Genuity. Please go ahead.

Hi. Good morning. I was just wondering if you could talk about some of the operational changes that have been made at Lantaris to make the business better positioned to perform on firm fixed-price contracts, given the possibility of cost overruns during production depending on what kind of bus it is?

Morning, Austin. Chris Johnson, the President of Lantaris, has done a fantastic job streamlining the business, making it efficient, eliminating terms and conditions in some older contracts that were onerous for the business. They have streamlined production. They have invested in the 300 series, and we have seen that produce programs in national security space. They bid in the appropriate margins and have the right-sized workforce and the right-sized facility complement. I am very proud of the work they have done, and it was an opportunity for Intuitive Machines, Inc. to come in and acquire the business when it was on its feet, strong, and producing. The future is very bright for us as a combined business.

Great. Thanks for the color.

Our next question comes from the line of Edison Yu from Deutsche Bank. Please go ahead.

Hey, thank you for taking our question. There has been a lot of talk about data centers in space. You just talked a lot about connectivity on the moon, Mars, solar system. How do you think about this type of architecture in terms of what it looks like, and are there certain technical capabilities that Lantaris brings that you can perhaps highlight? Thank you.

Good morning, Edison. I think there is a lot of difference of opinion on where the actual customer base will be for on-orbit data centers and what the architecture for on-orbit data centers will be. We are studying that very carefully right now. I think what Lantaris brings to the table is this Power and Propulsion Element—the most powerful power-generating spacecraft ever built—that has the ability to be a node in a data center. If you think about data centers in particular, there is the storage element, the transmission element, and the edge computing element or the high-speed computing. I think edge computing in space and doing decision-making in space is the key to the future of data centers, as opposed to replacing terrestrial-based data centers. I am skeptical about large, extremely large proliferated constellations in low Earth orbit. They have their challenges, both in power generation and in thermal management. Thinking about it with a set of large and small nodes together, maybe up in the GEO belt, is probably a better architecture, and that is where we are aiming at this point.

Our next question comes from the line of Jonathan Siegmann from Stifel. Please go ahead.

Good morning, Steve, Pete, and Steve. Thanks so much for taking my question, and congratulations on closing the acquisition in a busy couple of months. One more question on LTV. I thought the Artemis restructuring was all positive for your markets, but the actual acceleration of Artemis V, which I understood is the mission that the LTV was supposed to be launched on, and the delay in the award—can you talk about whether there is enough time to complete it when it is awarded? Or is this something that is going to change the structure or the exact mission? Thank you.

We expected award in the November timeframe, and so there are several months' delay in the award. In our construct, what we proposed was a delivery on a SpaceX Falcon Heavy with a lander. It is called Supernova. It is our heavy cargo lander, derived from our Nova-C lander, which has been to the South Pole twice. We are in charge of our own destiny flying on Falcon Heavy—non-related to Artemis directly. We are not tied to the sequence of events for Artemis V. We are flying independently per our architecture, and that gives us an edge to move that around and be in more control of the schedule. I do not see any significant delays to what we proposed.

Fantastic. And I will just slip in another one that we got that I did not have a great answer for. We have seen some second thinking about the transport layer by the SDA and relying on SpaceX constellation. Our understanding is the Tracking Layer, however, is completely independent of that. I was hoping you could confirm that thought and explain a little bit about why the Tracking Layer that you participate on is not really in the threat of being outsourced to an existing constellation. Thank you again.

You are correct in that the Tracking Layer is not affected here by this thinking, and all indications from the customer are that it is going to continue and continue to grow and be replenished as we move forward. I do not have any insight into those discussions internally to the government or with SpaceX, so I cannot comment on that in particular.

Our next question comes from the line of Michael Leshaw from KeyBanc Capital Markets. Please go ahead.

Hey, good morning. I wanted to ask on the space superiority executive order that was signed in December, and the strong support there for establishing a lunar presence. Did that pull forward any of your longer-term growth initiatives? Obviously, there could be some near-term challenges with the government shutdown, but does the administration's support for a lunar presence accelerate any initiatives or shift your focus at all? Thanks.

We are working directly with NASA to look at ways to move efforts forward faster. The agency is coming out with some streamlined acquisition guidelines to be able to let procurements out faster and is asking for commercial companies to figure out ways to bring investment to the table, to add to the federal dollar, to speed up development activities to accelerate our presence in space and accelerate astronauts' boots on the moon. Our efforts are specifically focused on putting in the necessary infrastructure in and around the moon to enable sustained presence at the moon. The executive order that was signed is complementary to our work; our business is complementary to that executive order, and we are aiming to support it as best we can.

Our next question comes from the line of Ronald Epstein from Bank of America. Please go ahead.

Hi. Good morning. This is Smith Styro on for Ron today. I just wanted to ask about how you see the competitive landscape evolving given the reformulation of Artemis, increased interest from SpaceX, Blue Origin, and some other players. Is it more challenging? Do you see opportunities for extended applications? Any color you can give around that.

From what I understand about NASA's plans for the lunar economy and space exploration, the Administrator has called for a higher cadence of missions to fly more equipment to the moon to learn about sustained presence on the moon. There will be more rovers, more landers, more satellites in and around the moon as a result of this push for sustained presence on the moon. I think that is excellent news for Intuitive Machines, Inc. The vendor pool from CLPS 1 will persist to CLPS 2.0. All the authorization and appropriations language that we have seen includes the follow-on CLPS, and we have heard from the Administrator that he would like to see a launch a month to the moon in the future. Calling for that kind of cadence of missions and repetitiveness really does improve reliability in our systems and allows us to grow a more sustainable business. We are very excited about it.

Our next question comes from the line of Griffin Boss from B. Riley Securities. Please go ahead.

Hi, good morning. Thanks for taking my question. I want to dig a little bit deeper into what you just mentioned there, Steve, on CLPS 2.0. I know we are patiently awaiting LTV and other contracts like CT-4 or GX, others, but CLPS 2.0 is a new one on the horizon. Obviously, there was an RFI out earlier this year. I am sure Intuitive responded to that. Do you have any insight where that stands or, more definitively, what the scale and scope could be, acknowledging that CLPS 1.0, I think, was about $2.5 billion? Do you have any insight as to if that scale for CLPS 2.0 will increase given the increased cadence of lunar landing that the Administrator has talked about?

I do expect CLPS 2.0 to be larger than CLPS 1. We have introduced ideas in our RFI response to the agency and some white papers—unsolicited—to increase the cadence of missions, and we are seeing that that is what is being called for. We have to think through how to increase production to meet that cadence of missions. We have requested things like block buys where you can buy several missions at a single time, and that would increase production rates and increase supply chain throughput. We have also introduced the concept of heavier cargo because we will be bringing bigger and larger elements to the surface, much like LTV, and so the call for heavier cargo is necessary, and we put that input in also. Larger vehicles. What else is interesting is the move from the Science Mission Directorate—CLPS 1.0 was part of the Science Mission Directorate. We have seen that move over to the Exploration Mission Directorate, and so you will see more engineered systems, surface infrastructure systems being called for in CLPS 2.0. The exact dollar amount—I am not certain what that will be as the agency figures out how it is going to rejigger their budget. But it is all positive from what I am hearing.

That is great color. Thank you, Steve. Appreciate you taking the question.

Our next question comes from the line of Jeffrey Van Rhee from Craig-Hallum. Please go ahead.

Good morning. This is Daniel on for Jeff. Just on the organic growth profile, I know you said previously Lantaris had been running around $630 million in revenue. I do not know if you have an updated number for full year 2025, but on a combined basis, it looks like maybe it is around teens organic growth for 2026. Maybe just walk in our expectations on organic growth.

By the way, we have not provided year end yet. We are closing out our performance here, and we should have them out near term. That will give you the 2024–2025 year-end combined. In terms of growth, when we look at our guidance, we are looking at it as a combined company now. There is a lot more integrated capability that we are bringing forward, so it is a little harder to parse it out. Arguably, of it, you are looking at about 66% of the revenue coming out of Lantaris and the other 33% coming out of us. That is a rough magnitude kind of look. We will get more granularity after you see the pro formas and as we move into visibility through the quarters.

Thank you.

Our next question comes from the line of Greg Pendy from Clear Street. Please go ahead.

Hey, thanks for taking my question. Just a quick one here. I think you had addressed the low-hanging fruit on NSNS given bandwidth constraints at Deep Space Network for the initial launch and also how commercial has only grown. But could you touch on the defense side? Hearing a lot how the moon is the ultimate high ground, and how that demand for NSNS may have changed from where it was a year ago, given what other countries might be doing with their ambitions on the moon. Thanks.

As far as international business goes, you heard us announce a strategic partnership with the Italian companies, Leonardo and Telespazio. They have an ESA-funded program called Moonlight to put communications satellites and some navigation satellites around the moon for European business. We struck a partnership to tie our networks together so the networks are larger. We are also working initiatives with JAXA Japan to do a similar thing, to create a standard and to create coverage in a way that supports the Japanese market, the European market, and the U.S. market combined. That is very exciting for us, and we are clearly seen as a leader here, setting the tone for how these networks will evolve and be interconnected and interoperable. On the national security side, space domain awareness is of critical importance, and having assets in and around the moon and lunar space is very important for understanding what the traffic model is around the moon and where things are moving. There has been expressed interest in using our network for those reasons also.

That is very helpful. Thanks a lot. Okay, and that concludes the Q&A portion of this call. I will now turn it back over to Stephen Altemus for any closing remarks.

Thank you for your questions today, everyone. You heard our strategy, and at its core, it is about building a business with greater durability and higher value over time. We are executing on our strategy and moving from single mission-based operations towards long-duration infrastructure services. That is the path we are on, and that is how we are thinking about the company's future. The future is bright. Thank you very much today. You will be hearing more from us in the future.

The meeting has now concluded. Thank you all for joining, and you may now disconnect.

Ladies and gentlemen, thank you for standing by. My name is Colby, and I'll be your conference operator today. At this time, I would like to welcome you to the Intuitive Machines Acquisition Update Conference Call. [Operator Instructions] Please be advised that today's call is being recorded. I would like to turn the call over to Stephen Zhang, Head of Investor Relations. Please go ahead.

Good morning. Welcome to the Intuitive Machines Acquisition Update Call. Chief Executive Officer, Steve Altemus; and Chief Financial Officer, Pete McGrath, are leading the call today. Before we begin, please note that some of the information discussed during today's call will consist of forward-looking statements, setting forth our current expectations with respect to the future of our business, the economy and other events. The company's actual results could differ materially from those indicated in any forward-looking statements due to many factors. These factors are described under forward-looking statements in the company's press release and the company's most recent 10-K and 10-Q filed with the SEC. We do not undertake any obligation to update forward-looking statements. We also expect to discuss certain financial measures and information that are non-GAAP measures as defined in the applicable SEC rules and regulations. Reconciliations to the company's GAAP measures are included in the acquisition update filed on Form 8-K. Finally, we posted an acquisition update call presentation to our website, which provides additional context. You can find this presentation on our Investor Relations page at www.intuitivemachines.com/investors. Now I'll turn the call over to Steve Altemus.

Thank you, Stephen. Good morning. I'm pleased to announce that Intuitive Machines has entered into a definitive agreement to acquire Lanteris Space Systems, formerly known as Maxar Space Systems from Advent in a transaction priced at $800 million, consisting of $450 million in cash and $350 million in Intuitive Machines Class A common stock. During our second quarter earnings call, I stated our long-term vision to become a new space prime, providing delivery, data and infrastructure services emphasizing growth in communications, navigation and space data networking services for defense, civil and commercial markets. We just did exactly that. With this acquisition, Intuitive Machines is positioned to become the next-generation space prime, applying our demonstrated agility and innovation with Lanteris' unmatched satellite production, scale and proven space flight reliability. The transaction represents the next step in Intuitive Machines evolution from a lunar-proven space infrastructure company to a vertically integrated space prime provider of choice, serving national security, civil and commercial customers across earth, ground, earth orbit, moon, Mars and beyond. Global demand for secure sovereign communications, missile warning and space domain awareness is increasing. U.S. defense and intelligence programs like Space Development Agency layered architecture require companies that can move fast, innovate and deliver at scale. Intuitive Machines brings a disruptive and innovative development approach in building unique, agile and highly specialized solutions in extreme firm fixed price environments. Over the past 2 years, we've proven our ability to build, fly, maneuver and operate in lunar space using our network of global ground stations and our near space data network. Our vision has always been clear to build the infrastructure that enables economic expansion in the space. To do that, we must move faster and operate at scale and that is what Lanteris brings. With over 65 years of experience, Lanteris has developed, delivered more than 300 spacecraft for critical national security, civil and commercial missions, supporting missile warning, space domain awareness and communication programs vital to the United States and its allies. The company maintains 99.99% on-orbit availability and operates world-class production facilities totaling over 560,000 square feet. Lanteris builds high-value spacecraft with a strong commercial focus, successfully operating in a cost-efficient competitive environment. In just the last 3 years, Lanteris introduced its 300 Series spacecraft as a leading platform for proliferated low earth orbit constellations. This record of performance cements Lanteris as a trusted provider of critical space defense capabilities for the U.S. government. We know the growing national security market is seeking commercial-minded solutions to address emerging complex missions. This acquisition allows us to apply ingenuity to proven delivery capability that distinguishes ourselves as a next-generation prime, coupling our collective expertise to address new demands across civil, defense and commercial sectors is a powerful combination we are pleased to bring to market. We believe this acquisition will strengthen the company's position to prime future national security space, including Golden Dome and Space Development Agency layered architecture, civil space such as Artemis, LTVS and Mars Data Relay and commercial space programs. This acquisition also enhances our competitiveness across several active opportunities where Intuitive Machines already leads. By integrating Lanteris' production scale and communications experience into our existing architectures, we strengthen our pursuit of our vision, expanding our lunar data relay constellation under the near Space network services contract and commercializing NASA's tracking and data relay satellite system. This integration can accelerate task orders and broaden our capacity to deliver value from every orbit. We believe this acquisition accelerates Intuitive Machines' transition into a company that can design, manufacture, deliver and operate missions across the entire space domain from earth orbit to lunar orbit and ultimately to Mars and Deep Space. Intuitive Machines is creating a new model for how space primes operate that intends to unlock diverse revenue streams that fuel a high-growth, high-margin portfolio. As mentioned, Lanteris positioned the company for sustainable growth by investing in the 300 class satellite and pivoting toward national security markets, including the Space Development Agency Tranche 1 and Tranche 2 awards for L3Harris in 2022 and 2024. That foundation unlocked the potential of Lanteris' 300 Series spacecraft for national security applications and established it as a trusted competitive supplier. We look forward to applying our innovation, speed of execution and services model to further amplify this momentum. I'll now hand it over to Pete McGrath to go over the Q3 financials along with details around the transaction.

Thank you, Steve, and thanks to everyone joining us today. Starting with Q3 financials. Revenue was $52.4 million, driven primarily by OMES, CLPS and NSNS. We continue to monitor the government shutdown and budgetary processes where there is legislative language for the Defense Appropriations markup to fund OSAM-1 for the Space Force, which will shift this program from civil space to national security. Gross margin was $5.7 million, driven by continued focus on cost and execution of key programs. This was an improvement compared to Q2 2025, which included significant EAC adjustments on IM-3 and IM-4. Net loss for the quarter was $10 million, and adjusted EBITDA was negative $13.2 million in the quarter, an improvement in adjusted EBITDA of $12.2 million versus Q2 2025, driven by higher gross margins. We ended Q3 with a backlog of $235.9 million, which includes $9.8 million for the Definitized orbital transfer vehicle contract, $8.2 million for the follow-on in-space nuclear power contract and $7.5 million for a commercial rideshare customer on IM-4. Note that the backlog does not contain the remaining $123 million of the total $150 million initial value for NSNS 2.2, which is recognized on a task order basis. When looking at our Q3 2025 backlog, we expect to recognize approximately 20% of that in 2025. With the acquisition of Lanteris, we intend to provide updated backlog burn rates for 2026 and 2027 early next year. In August, we completed a $345 million gross convertible note offering with the intent to acquire a company that would transform us into a next-generation space prime. Lanteris is that company. We intended Q3 with a cash balance of $622 million. Our detailed financial tables will be provided next week in conjunction with our 10-Q filing. Moving on to outlook. The timing associated with our year-end revenue is impacted by uncertainty related to the government shutdown. Therefore, based on current backlog, we see Q4 revenue in line with Q3, and we remain confident in our ability to capture our identified near-term awards. Intuitive Machines expects to provide a new outlook for the combined 2026 combined company early next year. Now shifting to the Lanteris acquisition. The transaction is valued at $800 million and will be funded through $450 million of cash from our balance sheet and $350 million of Intuitive Machines Class A common stock, subject to adjustments. The deal uses a stock value of $12.34 based on the volume weighted average trading price for the 10 -- 10 trading days ending on October 31, 2025. As a stand-alone company, Lanteris is a cash-generating business. As a combined company, Intuitive Machines expects to have adequate cash on hand for continued operations. The transaction has been approved by Intuitive Machines Board of Directors as well as the seller's Board. We expect to close the transaction in Q1 of next year, subject to customary regulatory approvals and closing conditions. This acquisition will be immediately accretive to revenue, adjusted EBITDA and free cash flow. Following this transaction, we will remain in a position of financial strength as a combined entity with more than $850 million in revenue, positive adjusted EBITDA and $920 million in backlog based on Q3 2025 trailing 12-month financials. I will now pass it back to Steve Altemus for closing remarks.

Thanks, Pete. The new Intuitive machines will combine rapid innovation and precision spacecraft production to meet the growing demand for responsive, high-reliability space infrastructure and services. With Lanteris production scale, we gained the opportunity to deploy entire constellations that extend our lunar network to proliferated low earth orbit to MEO and GEO. We believe this acquisition adds immediate capability to deploy multi-mission, multi-domain data networks. We are defining the next generation of space prime that will operate and deliver faster and more affordably across the space domain. With that, operator, we're now ready for questions.

[Operator Instructions] Your first question comes from the line of Austin Moeller with Canaccord.

So just my first question here, what changes has Advent made within Lanteris to improve the margin profile of their manufacturing since they bought them? And are there any large, exquisite satellite programs in the backlog that still need to ship out?

So Lanteris is interesting. As you know, they were public. Maxar Space was publicly traded and then went private with Advent. And what you've seen is that they've had some programs that they have completed that we're struggling, I guess, with cost controls. All those are off the books, and they've since then invested in the 300 Series satellite, which actually serves Tranche 1 and Tranche 2 for the Space Development Agency. And so they're moving in a very positive direction moving forward with efficiencies that they've built into the company. So we're very pleased to see the momentum that they have and to capitalize on that momentum moving forward. I think this is an exciting acquisition. As far as your second question, I believe they're essentially nearing completion of the power propulsion element for NASA's Artemis program. And that's the most powerful satellite built in terms of propulsion and power generation to date for anyone, I believe. And that one is essentially complete and ready to ship certainly in the near future.

Okay. And then I guess, should we frame the strategy here as looking to gain more manufacturing capability left of launch and then being able to drive margins with services revenues post launch using the ground stations and the op center?

Yes, that's correct. Our services model is a higher-margin business. And what we can do is use the manufacturing and production and the reliability that Lanteris brings to the table to feed our own networks, our data networks out to Sun space and then thinking about how we might replace the aging tracking data relay satellite service for the U.S. government and then out to Mars in terms of Mars data relay to replace that aging infrastructure. So it really is -- we are our own customer in some sense for our satellites and the high reliability of the track record that Lanteris has is just incredible in terms of how many satellites they've put into orbit, their operational life and their on-orbit availability. At 99.9% availability is just a market-leading capability.

Your next question comes from the line of Edison Yu with Deutsche Bank.

Congratulations on the transformative deal. On Lanteris, first I want to ask, what do you envision as the sort of growth profile of it going forward? Obviously, it's gone private. It's been through kind of its own issues that you kind of alluded to earlier. Is this a business that can grow quite healthy going forward, assuming you can win some of these contracts? What's sort of embedded in your outlook for that?

Well, Edison, thanks for your question. Together, the combination of the company really is exciting. with the spark of innovation that Intuitive Machines brings and Lanteris' production scale and high reliability, we not only feed existing programs on both the Intuitive Machines side and the Lanteris side but we can actually feed to Austin's question, the near space network and our own network capabilities in terms of communication data relay satellites. But what's really powerful is a total addressable market that we can unlock and open up and the diverse revenue streams that we will create as taking the family of satellites that Lanteris currently builds and providing unique mission solutions to open up those markets and access those revenue streams. We talk about things like the SDA Tranche 3 tracking layer. We can talk about TedRS replacement. We can talk about Mars data Relay. We can talk about alternate GPS. Those are the kinds of things that aren't necessarily on the books today that are new markets that become available with this acquisition.

Understood. You disclosed the backlog number, obviously, for Lanteris. Is there any way to break that down in any deeper way, perhaps even by what programs would be the most in there in terms of customer exposure, anything you could share?

Well, I would say, if you look at the business today, they're roughly 25% defense 25% civil and 50% commercial is the way you break down their business. And I think you can look at the backlog in that way. I think that backlog will be changing over time as these pending new awards for Lanteris will change that mix to increase the defense or national security portion of their portfolio.

Your next question comes from the line of Josh Sullivan with JonesTrading.

Congratulations there. Steve, in the past, you've talked a lot about how IM is a data company at its core. Can you just touch on how IM and Lanteris here scale some of the data opportunities, just what you're thinking about there?

Yes, Josh. What we've said since -- over the past year or 2 is you've seen us form the company Intuitive Machines in terms of delivery services, that's the transportation layer that takes us to the moon. The data services, which is the ground segment around the world, the global ground segment that communicates out towards the moon and beyond out to 2 million kilometers. That's the direct-to-earth kind of ground segment, coupled with our data relay network and position navigation timing around the moon, that constellation. So now if we have that in place, how might we extend that going forward. And then the third -- I'll come back to that. And the third one pillar is the infrastructure as a service, which you'll -- we're anxiously awaiting the outcome of the Lunar Terrain Vehicle services contract, and we expect that award later in this year based depending on the government shutdown. But as I think about the data services, the major expansion of the business will come in the data services and networks over time. As we see, there's a lot of opportunity, like I said, with the tracking data relay satellite services coming open and maybe potentially the deep space network commercialization as well as replacing the aging infrastructure across out at Mars and Mars data relay. In addition, there is the -- are the tracking layers for the SDA and the Golden Dome, which has opportunities for communications and navigation that directly is fed by the kind of capability that Intuitive Machines has, but now augmented by the amazing and reliable satellites that Lanteris bring to bear. So I think that coupling really does put us in a position to prime some of the opportunities coming out of Golden Dome and SDA.

Got it. And then I guess, Intuitive's historical knowledge base around Lunar operations and now the scale that Lanteris brings to bear, how might you be thinking about Artemis 3 or related tactical opportunities here?

Yes. We actually are in a fantastic position to offer -- build a team and offer solutions for the human landing system. NASA is keenly interested in finding a way to deliver that earlier and Intuitive Machines are going to throw our hat in the ring with Lanteris by our side and other companies joining our team. So you can expect an offering from Intuitive Machines.

Your next question comes from the line of Jonathan Siegmann with Stifel.

Congratulations on the transaction. So there's been some news reports that the customer might be rethinking some of the Artemis missions and even rebidding portions of it. Can you comment a bit on how NASA's thinking may be evolving on the portions that you're involved with? And also, if I heard how you answered Josh's question, you still expect LTV to be awarded this year despite the shutdown?

Yes. Thanks, Jonathan. And I appreciate your coverage of Intuitive Machines moving forward. Thank you. So we see that the CLPS contract, Commercial Lunar Payload Services contract continues to move forward. We're expecting results of a solicitation for what they call CT4. Again, the government shutdown has put a little bit of a monkey wrench in that, not showing what the timing of that will be, whether that's supposed to be awarded by the end of the year. We do expect the LTVS demonstration mission to be awarded. From our understanding that, that solicitation is ready to award. Again, the government shutdown has put timing in question, but we do expect that, and that's part of the Artemis program to be awarded. And then you're hearing a lot of talk about moving faster with Artemis 3 and the human landed system. And so that essentially and the agency is looking for information to repost and reopen that solicitation. And I answered Josh there that we're going to throw our hat in the ring on that one. And then we're continuing to press forward with all speed on the Near Space Network services contract. That's a contract that not only supports Artemis program, but supports other government agencies and their needs for communications from earth all the way out beyond cislunar space. And so the future looks very bright for us in terms of the NASA customer. And then if you think about what I just was talking about, about in the national security space, we're exceptionally positioned to respond to opportunities that are coming out of SDA and in the Golden Dome programs.

And maybe if I could slip another one, just in the capacity, you were successful in adding to your footprint in Houston recently and now you have -- you will have a wider footprint with the acquisition. Is there -- I guess, does that change your plans on where you're going to be producing the own satellites in Houston? Or is there a chance to put these all pieces together differently?

Yes, it's good. The facility complement at Lanteris is incredible with 3 categories of satellites in their family, the 300, the 500 and the 1,300 series. Well-oiled machine out there in Palo Alto and San Jose. Here in Houston, we have some serious hardware to build also. We have the Nova-C for 2 additional missions. We have the Nova-D heavy cargo mission for LTV. We have the LTV to build, and we're building the first 3 satellites for our constellation around the moon for the NSNS. We are thinking about converting and building larger satellites for the fourth and fifth satellite in the constellation now that we plan to acquire Lanteris. So much more capable satellites that then can prove out the capability that -- for Mars data relay. And essentially, those satellites would be precursors to Mars data Relay satellites in the future.

Your next question comes from Alex Preston with Bank of America.

So you noted in the release, you're going to end the quarter with about $620 million of cash, deployed $450 million here. What's your comfort level given Lanteris' cash generation? Or would you maybe look for incremental financing?

Right now, we have enough capital on the balance sheet to fund operations moving forward, even considering the combination with Lanteris. Lanteris is a cash-generating business. And the combination, we expect continued operations with sufficient capital moving forward.

Yes. We also are always being opportunistic looking at other M&A opportunities, which would be anything that would drive additional cash needs. But right now, we see adequate cash on the books to manage our operations.

Got it. Appreciate the color. And then maybe just a quick sort of housekeeping one. Steve, I think you talked about Lanteris' backlog is 25% defense, 25% civil, 50% commercial. Does that commercial portion include something like the work they do for L3 on the tracking layer? Or is that like strictly by end market or end use?

That's by end market. So the commercial work is really the GEO communications birds that they put up. That's really the 1,300 series satellite, the larger satellites. The tracking layer we call into the national security.

Next question comes from Andres Sheppard with Cantor Fitzgerald.

This is Anand on for Andres. Congrats on the news and the acquisition. Most of our questions have been asked but I was wondering if you could dive a little bit more on your recent statement and could help explain what this means for SDA and Golden Dome opportunities now as a combined company, especially with the regulatory focus and shift on this initiative?

Yes. So I think if you look at the capabilities of the -- and the investment that Lanteris made in the 300 series satellite, that is a very capable satellite for proliferated LEO constellation, which fits the need for the tracking layer. And so I think it's a strong offering in partnership with L3Harris that -- we're hopeful that, that will be awarded. So we're looking forward to that. And then as Golden Dome takes shape, the combination of the ingenuity and innovation that Intuitive Machines brings with its systems and communications and navigation scheme, coupled with the very capable satellite buses produced by Lanteris offer unique solutions that I don't think are in the market today with any other vendor or contractor. So we feel like we're in a good position here for the future opportunities coming out of Golden Dome.

Got it. And I guess going forward, maybe what other news and opportunities do you expect to pursue and unlock? I know a lot were mentioned but what are you the most excited about?

Well, we were very excited last night to get to signing. We look to get to closing here in the next 60 to 90 days and really get the businesses integrated. And the possibilities that are associated with putting Intuitive Machines and Lanteris together really create some excitement in the aerospace sector. And so just working together and building a powerhouse new space prime is what I'm looking forward to that really kind of disrupts the paradigm that we've had for so many years and now provides an alternative offering with a commercial bent to it to provide lean, agile, affordable solutions to both civil space and national security space. That's the excitement.

Your next question comes from Jeff Van Rhee with Craig-Hallum.

This is Vijay Homan on for Jeff Van Re. Just had a quick one for you. I was kind of wondering, was Lanteris the kind of capability you guys were specifically shopping for? Were there other kind of potential targets that you were looking at to bring these capabilities in-house? Or was Lanteris kind of the only one and sort of an opportunistic buy?

We had an M&A strategy that we've been working on for some time. Now you saw the addition of Kinetics, which was a very capable, high-performance company that we added for precision navigation and constellation management and orbit determination. That was strategic. It was small but strategic, and they're brilliant people that we added to the company. Next on the list was Lanteris and building the production capability, the scale and the reliability. And we'll continue to look like this to add on and fold in capabilities as we need to continue to evolve the company into this next-generation prime.

Your next question comes from Greg Pendy with Clear Street.

Can you just kind of highlight what maybe -- is there any regulatory risk on closing the deal or integration risk? And then also just in light of all the news about the EOCL potential budget cuts there, is there any kind of risks that we should think about with this deal?

Well, we'll go through a standard antitrust review by the government from a regulatory standpoint. We feel that's fairly standard. That will take 20 days to file and 30 days for the opinion from the government. We don't expect anything out of that. We'll see what the government thinks and how the government shutdown affects that timing. In terms of risks, I think we've looked at the structure of both companies. We've thought about it. We looked at financial risks is in a strong position with a lot of momentum. Intuitive Machines is in a strong position. And both companies have catalysts pending that really can even improve upon our strong financial position. So I'm feeling very confident about it. And over the next 9 to 12 months, we'll do a full integration of 2 companies. We'll go through those challenges and put together a very strong company here in the coming months.

Your next question comes from the line of Griffin Boss with B. Riley Securities.

So first, I just want to jump back, build off of another question that was asked a little bit earlier regarding just the integration of Lanteris and the implications for NSNS. So you talked about how potentially -- I think I heard you correctly that the fourth and fifth data relay satellite might now -- architecture might now look a little bit bigger with the addition of Lanteris' capabilities. But does this -- does that addition and the additional manufacturing capacity that it brings change your calculus with regard to the timing of deployment of those data relay satellites? You've talked about the first one going up on IM-3, subsequent two going up on IM-4 but maybe can you pull those forward and deploy that full 5 satellite constellation earlier than you might have otherwise anticipated?

Yes. Thanks for your question, Griffin. What we're finding in NSNS is that there's a demand for capability for the satellites that we're planning for up around the moon. And we anticipate in that Lunar constellation that there will be more demand and more customers for the satellites as we move forward over the coming 3, 4 years. And so we're anticipating that need and providing more capability for size, weight and power on those buses so that we can provide the space domain awareness capabilities in that Lunar constellation that we think the customers are going to want. So this is an opportunity for us to grow that constellation. As far as speed of delivery, we are always looking for a way to get that constellation up and flying sooner. Our cadence of missions currently, IM-3, IM-4, IM-5 are space where we're planning to put the satellites up on those missions. If we can bring IM-4 and 5 missions in, we would but I think they're potted. I think the alternatives to delivery is what we're focused on now in terms of other ways to put those satellites up as opposed to tying them tightly to the CLPS missions. So we're going to continue to study that and look for rideshare opportunities to get them in translunar injection and then off to the moon as soon as we can.

Got it. Okay. Understood. And then, yes, just second one for me. I guess I'll shift over what I'll call legacy Intuitive Machines. I want to dig into this $8 million contract extension from AFRL for the in-space nuclear power tech. I think that's an extension on the Jetson program. But maybe you can just kind of dig into that and specifically in the context of this -- the new nuclear reactor on the moon, the proposals coming in for that 100-kilowatt reactor. Does this extension help in positioning Intuitive to win on that nuclear reactor contract as well potentially? Like is the technology similar that you can use for both of those programs?

Thanks, Griffin. Nuclear space is exciting right now, and Intuitive Machines has been well positioned. As you recall, we've been working the Fission Surface Power Phase 1 and Phase 1a for some time now. So we're already in the mix for developing that reactor and delivering it to the surface. And we will continue to go forward with that opportunity to develop and deploy the reactor. As that procurement takes shape, we're following that very closely with our teammates. The Jetson AFRL contract for that Stealth satellite keeps us in the nuclear space game with an alternative technology, that's the Sterling engine. And what we have is this follow-on contract to actually demonstrate the Sterling engine operations on the International Space Station. That's what this is for this next tranche, which actually advances the technology and the capability of operating a Sterling engine, which is part of the reactor technology on the International Space Station. So the technologies between FSP and Jetson are similar but not identical. I think we'll see whether the FSP solution is a breaking cycle or a Sterling cycle. But the Jetson right now and the way we're thinking about propulsion is with a stirling engine cycle. And so we'll test that out with AFRL.

Just one note on the Fission Surface or FSP program. Maxar was -- well, Lanteris was one of our partners on that in the last phase, too. So we do have a long history of working with Lanteris over the last 3 to 5 years.

And your last question comes from Suji Desilva with ROTH Capital.

Pete, congrats on the transaction here. Just a clarification on Lanteris and the asset acquired just versus Maxar. The revenue mix there, is there any recurring revenue or service revenue versus satellite product revenue in the acquired asset?

The way I see it today is that it's product-based revenue delivering the 300, 500 and 1,300 class satellites. There's very little subsystem delivery where they focus on developing the subsystems for themselves and their buses. And then what we'll introduce as Intuitive Machines is that higher-margin service model approach where we're actually flying and operating in space and delivering the data back in as a service. And so I think this is just such a smart and strong combination to put these 2 businesses together really will unlock the diverse revenue streams and higher margins.

One other addition to that is as you see the government move towards the service model, this combination positions us well to be playing in that space because traditionally, government has bought satellites. Now they're looking to buy services.

Okay. That helps, Pete. And then my other question is, I saw in the presentation, you mentioned robotics. I'm wondering if that's just a complementary capability or that could be a category, how you see that landscape as a product?

Yes. I'll tell you something. I'm very excited about that. We've opened up a center of excellence for mechanisms and robotics in Maryland up near BWI Airport in Glen Burnie. That team is exceptional and then to incorporate the Lanteris robotics team with us is just a very strong and powerful combination. We currently have Lanteris or Maxar Space Systems on our LTVS team to provide the robotic arm for the LTVS. And so we're naturally working together already. And when you think about other opportunities that are coming down from the national security space, you look at RGXX and MGO, those programs require essentially highly agile enterprise-class satellites like the 1300 series with robotic arms that can grapple and manipulate other satellites to repair them and inspect them. So that's another offering of a new market that we putting these unique capabilities together that we can create and be very competitive with. Also, if you think about it, we teamed also on the OSAM mission. So the OMES contract and the on-orbit satellite servicing and manufacturing, Maxar built the bus out of the 1,300 series satellite for that mission. So as we fly that potentially for the Space Force, what are the follow-on OSAM-X missions that we can fly where we can reproduce that bus over and over again and deliver it for on-orbit satellite servicing and manufacturing and move towards in-space assembly, all brand-new markets that we have yet to tap into. So it's very exciting.

Thank you. And with no further questions in queue, I'd like to turn the conference back over to Steve Altemus for any closing remarks.

Well, thank you, everyone, for joining us this morning, and welcome to the Lanteris team as part of the Intuitive Machines family. We're very excited and looking forward to the future in space. Thank you very much.

This concludes today's conference call. You may now disconnect.