Intuitive Machines Inc. (NASDAQ:LUNR) shares dropped 9.4% after the space technology company reported a wider-than-expected second-quarter loss and revenue below Wall Street forecasts. The disappointing headline figures overshadowed record quarterly sales, a rapidly expanding backlog and significant new contract awards across commercial and national security programmes.
Intuitive Machines reports wider Q2 loss
Intuitive Machines recorded an adjusted loss of $0.29 per share for the quarter ended June 30, considerably wider than the analyst estimate of $0.09.
Revenue reached a quarterly record of $206.17 million, representing growth of more than 300% compared with the second quarter of 2025.
Despite the substantial year-over-year increase, revenue fell short of the consensus forecast of $223.84 million, contributing to the negative reaction in the shares.
Growth during the quarter was supported by execution across spacecraft production, Commercial Lunar Payload Services (CLPS), Orbital Mission Engineering Services (OMES) and National Security and Space Services (NSNS).
CEO Steve Altemus said, “We delivered a strong quarter, highlighted by revenue over four times Q2 2025 as we executed across our programs, recorded unprecedented bookings and backlog, and positioned the Company for the next phase of growth.”
Full-year revenue outlook reaches as much as $1 billion
For fiscal 2026, Intuitive Machines expects revenue of between $900 million and $1 billion.
The midpoint of the range stands at $950 million, matching the current analyst consensus.
The company also expects to generate positive adjusted EBITDA for the full year, marking an important potential step towards stronger underlying profitability as revenue scales.
Delivering on that target will be closely watched following the wider-than-expected second-quarter loss.
New contract awards reach $920 million
While the quarterly financial results missed forecasts, commercial momentum remained strong.
Intuitive Machines secured approximately $920 million of new contract awards during the second quarter and booked a further $300 million during the third quarter to date.
Among the major awards was a contract valued at more than $600 million covering three commercial satellites for geostationary orbit.
The company also received an award in July for 18 spacecraft supporting the Accelerated Missile Defense Tranche 3 Golden Dome constellation.
The contract wins further expand Intuitive Machines’ exposure beyond its lunar activities and into larger commercial and defence-related space programmes.
Backlog expands to $1.8 billion
Strong bookings drove the company’s backlog to $1.8 billion at the end of the second quarter.
That represents an increase of approximately $1.5 billion compared with the end of 2025, providing substantially greater visibility into future revenue.
The rapid expansion of the order book reflects Intuitive Machines’ increasing involvement across lunar exploration, satellite manufacturing, orbital services and national security programmes.
The company also ended the quarter with $367 million in cash, providing additional resources to support execution of its growing contract portfolio.
National Security becomes a larger revenue contributor
One of the most significant changes in Intuitive Machines’ revenue mix was the growing contribution from National Security programmes.
National Security revenue increased from 3% of total revenue in the comparable prior-year period to 30% during the second quarter.
The shift highlights the company’s increasing exposure to U.S. defence and security-related space spending and could provide a more diversified revenue base as the business expands.
Contracts such as the Golden Dome spacecraft award could further strengthen that contribution over future periods.
Investors weigh earnings miss against record backlog
The 9.4% decline in Intuitive Machines shares indicates that investors focused primarily on the wider-than-expected quarterly loss and revenue shortfall despite several positive operational developments.
Record revenue, $920 million in second-quarter awards and a backlog of $1.8 billion demonstrate significant growth in the company’s contracted business.
Attention will now turn to execution during the second half of 2026, particularly whether Intuitive Machines can convert its rapidly expanding backlog into revenue while achieving its target of positive adjusted EBITDA for the full year.