Intuitive Machines, Inc.LUNR
Intuitive Machines, Inc. Earnings Per Share Disclosure
NOTE 12 - NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share of Class A common stock is computed by dividing net income (loss) attributable to Class A common shareholders for the year ended December 31, 2024, and the period from February 13, 2023, or the Closing Date, to December 31, 2023 December 31, 2024 by the weighted-average number of shares of Class A common stock outstanding for the same periods.
Diluted net income per share of Class A common stock includes additional weighted average common shares that would have been outstanding if potential common shares with a dilutive effect had been issued using the if-converted method for the Series A Preferred Stock and the treasury method for our RSUs, PSUs, options, and warrants. During loss periods, diluted net loss per share for all periods presented is the same as basic net loss per share as the inclusion of the potentially issuable shares would be anti-dilutive.
The following table presents the computation of the basic and diluted income (loss) per share of Class A Common Stock (in thousands, except share data):
| Year Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Numerator | |||||||||||
| Net income (loss) (post Business Combination) | $ | (346,922) | $ | 16,621 | |||||||
| Less: Net loss attributable to redeemable noncontrolling interest | (67,004) | (45,141) | |||||||||
| Less: Net income attributable to noncontrolling interest | 3,495 | — | |||||||||
| Net income (loss) attributable to the Company | (283,413) | 61,762 | |||||||||
| Less: Cumulative preferred dividends | (896) | (2,343) | |||||||||
| Net income (loss) attributable to the Company | $ | (284,309) | $ | 59,419 | |||||||
| Denominator | |||||||||||
| Basic weighted-average shares of Class A common stock outstanding | 61,410,250 | 17,648,050 | |||||||||
| RSUs and Options | — | 1,112,364 | |||||||||
| Series A Preferred Stock | — | 3,719,506 | |||||||||
| Warrants | — | 3,084,393 | |||||||||
| Diluted weighted-average shares of Class A common stock outstanding | 61,410,250 | 25,564,313 | |||||||||
| Net income (loss) per share of Class A common stock - basic | $ | (4.63) | $ | 3.37 | |||||||
| Net income (loss) per share of Class A common stock - diluted | $ | (4.63) | $ | 2.42 | |||||||
The following table presents potentially dilutive securities, as of the end of the periods, excluded from the computation of diluted net income (loss) per share of Class A Common Stock as their effect would be anti-dilutive, their exercise price was out-of-the-money, or because of unsatisfied contingent issuance conditions.
| Year Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
RSUs and PSUs(1) | 3,307,039 | 1,832,918 | |||||||||
Options(1)(4) | 989,423 | 261,432 | |||||||||
Series A Preferred Stock(2) | 1,893,830 | — | |||||||||
Warrants (publicly issued), Initial Warrants, Conversion Warrants, and Series A Preferred Warrants (1)(4) | 26,787,265 | 32,048,682 | |||||||||
Earn Out Units(3) | 7,500,000 | 7,500,000 | |||||||||
(1) Represents number of instruments outstanding at the end of the period that were evaluated under the treasury stock method for potentially dilutive effects and were determined to be anti-dilutive.
(2) Represents number of instruments outstanding as converted at the end of the period that were evaluated under the if-converted method for potentially dilutive effects and were determined to be anti-dilutive.
(3) Represents number of Earn Out Units outstanding at the end of the period that were excluded due to unsatisfied contingent issuance conditions. See the subsequent disclosure on the Earn Out Units below.
(4) Options and warrants with exercises prices greater than the average market price of our Class A common stock are excluded from the computation of diluted net income (loss) per share because they are out-of-the-money. The out-of-the-money instruments included in the table above were as follows: options of 0 and 261,432 for the year ended December 31, 2024 and 2023, respectively, and warrants of 22,636,485 and 32,048,682 for the year ended December 31, 2024 and 2023, respectively.
See Note 17 - Subsequent Events for additional information related to changes to our capital structure during the first quarter of 2025 resulting from 15,358,229 of Class A Common Stock issued for Warrants exercised, redemption of 6,571,724 outstanding Warrants, 941,080 repurchase of our Class A Common Stock, and 7,500,000 of Class C Common Stock issued in connection with vested Earn Out Units.
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.