Intuitive Machines Inc. (NASDAQ:LUNR) shares dropped 13.3% in premarket trading on Wednesday, even after the company announced a $175 million strategic equity investment backed by global institutional investors.
The space infrastructure and services firm said the new capital will be used to accelerate revenue growth initiatives and fund further development of communications and data processing network technologies. The funding follows the company’s acquisition of Lanteris Space Systems in January.
Intuitive Machines plans to expand its Near Space Network Services while advancing its vision of building a solar system internet independent of Earth-based infrastructure. By investing in Lanteris platforms—particularly the 1300 series—the company aims to strengthen its presence in Geostationary Orbit, expand lunar capabilities, extend operations toward Mars, and enhance on-orbit data processing and edge computing capabilities.
Management said the investment is expected to support the company’s ability to secure and deliver higher-margin, recurring revenue opportunities, including Golden Dome initiatives, the Tracking and Data Relay Satellite System, the Mars Telecommunications Orbiter, and emerging space-based orbital data center programs.
“We are building a scalable infrastructure platform from low-Earth orbit to the Moon and into deep space,” said Chief Executive Officer Steve Altemus. “With this investment, we can accelerate the integration of the combined company’s collective capabilities to deliver next-generation data, communications, and space-based infrastructure services.”
The company added that it is awaiting decisions on several upcoming contract awards, including NASA’s Lunar Terrain Vehicle Services program, the next Commercial Lunar Payload Services award, and follow-on contracts tied to the Proliferated Warfighter Space Architecture satellite network.
Under the definitive securities purchase agreement, Intuitive Machines will issue Class A common stock in exchange for the $175 million investment. The transaction is expected to close on February 27, 2026, subject to customary closing conditions.