Why Did Intuitive Machines Stock Just Drop?
Key Points
Intuitive Machines missed on both sales and earnings this morning, but its stock isn't taking much of a hit yet.
Sales nearly tripled year over year, and are set to beat expectations for the full year.
- 10 stocks we like better than Intuitive Machines ›
Intuitive Machines (NASDAQ: LUNR) stock, the space company that returned America to the moon in 2024 after a 52-year absence, opened sharply lower after missing Q1 estimates this morning. As of 11:25 a.m. ET, the stock has pared its losses and is down only about 0.5%.
Heading into Intuitive's report, analysts expected the space stock to lose about $0.06 per share on $200.1 million in revenue. Instead, Intuitive reported a $0.25-per-share loss on sales of $186.7 million.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Intuitive Machines Q1 earnings
That sounds bad, but there was good news as well. With help from its recent acquisition of satellite manufacturer Lanteris, Intuitive Machines nearly tripled its revenue year over year. And despite reporting $0.25 per share in GAAP losses, Intuitive noted that its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were positive for the quarter, setting a new record at $2.7 million.
But does $2.7 million in extremely non-GAAP EBITDA justify investors hanging a $5.7 billion valuation on Intuitive stock? Does it justify Intuitive shares selling for more than 16 times trailing sales?
What's next for Intuitive Machines stock
That really depends on how quickly Intuitive can grow its numbers. And the good news here is that Intuitive seems set to grow at a pretty nice clip.
Sales for the quarter were under $187 million. Still, Intuitive landed $428.9 million worth of new contracts in the quarter, yielding a book-to-bill ratio of 2.3 -- indicative of strong revenue growth ahead. Management guided investors to expect full-year sales of $900 million to $1 billion, ahead of analyst estimates for this year.
As for next year, S&P Global Market Intelligence forecasts continued sales growth, resulting in Intuitive's first-ever positive free cash flow year.
Should you buy stock in Intuitive Machines right now?
Before you buy stock in Intuitive Machines, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intuitive Machines wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,205!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,384,459!*
Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 14, 2026.
Rich Smith has positions in Intuitive Machines. The Motley Fool has positions in and recommends Intuitive Machines. The Motley Fool has a disclosure policy.
Recommended Articles
