Intuitive Machines, Inc.LUNR
Intuitive Machines, Inc. Revenue Disclosure
NOTE 4 - REVENUE
Disaggregated Revenue
We disaggregate our revenue from contracts with customers by contract type. The following table provides information about disaggregated revenue for the years ended December 31, 2025 and 2024, (in thousands):
| Year Ended December 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Revenue by Contract Type | |||||||||||||||||||||||
| Fixed price | $ | 120,308 | 57 | % | $ | 74,681 | 33 | % | |||||||||||||||
| Cost reimbursable | 80,102 | 38 | % | 146,516 | 64 | % | |||||||||||||||||
| Time and materials | 6,722 | 3 | % | 6,803 | 3 | % | |||||||||||||||||
| Revenue from contracts with customers | 207,132 | 98 | % | 228,000 | 100 | % | |||||||||||||||||
| Grant revenue | 2,927 | 2 | % | — | — | % | |||||||||||||||||
| Total revenue | $ | 210,059 | 100 | % | $ | 228,000 | 100 | % | |||||||||||||||
Contract Assets and Liabilities
Contract assets primarily relate to deferred contract costs for subcontracted launch services, as well as work completed not yet billed for performance obligations that are satisfied over time. Deferred contract costs and unbilled receivables are recorded contract assets on our consolidated balance sheets. Contract assets related to deferred contract costs are amortized straight-line across the life of the long-term service arrangement. Contract assets related to work completed for performance obligations that are satisfied over time are transferred to receivables when the right to consideration becomes unconditional. Contract liabilities relate to billings or consideration received in advance of performance (obligation to transfer goods or services to a customer) under the contract as well as provisions for loss contracts. Contract liabilities are recognized as revenue when the performance obligation has been performed. Current deferred revenue and provisions for loss contracts are recorded in current contract liabilities on our consolidated balance sheets. Long-term deferred revenue and provisions for loss contracts are recorded in long-term contract liabilities on our consolidated balance sheets.
The following table presents contract assets as of December 31, 2025 and 2024 (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||
| Contract Assets | |||||||||||
| Unbilled receivables | $ | 12,228 | $ | 18,113 | |||||||
| Deferred contract costs | 8 | 16,479 | |||||||||
| Total | $ | 12,236 | $ | 34,592 | |||||||
Amortization expense associated with deferred contract costs for subcontracted launch services was recorded in cost of revenue and was $29.8 million and $10.1 million for the years ended December 31, 2025 and 2024, respectively. Launch
delay fees are recorded directly to the cost of revenue and were $2.3 million and $3.6 million, for the years ended December 31, 2025 and 2024, respectively.
The following table presents contract liabilities as of December 31, 2025 and 2024 (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||
| Contract liabilities – current | |||||||||||
| Deferred revenue | $ | 45,712 | $ | 54,803 | |||||||
| Contract loss provision | 6,996 | 7,890 | |||||||||
| Accrued launch costs | 4,660 | 2,491 | |||||||||
| Total contract liabilities – current | 57,368 | 65,184 | |||||||||
| Contract liabilities – long-term | |||||||||||
| Deferred revenue | 5,900 | 14,334 | |||||||||
| Contract loss provision | 441 | — | |||||||||
| Total contract liabilities – long-term | 6,341 | 14,334 | |||||||||
| Total contract liabilities | $ | 63,709 | $ | 79,518 | |||||||
Revenue recognized from amounts included in contract liabilities at the beginning of the period was $53.3 million and $13.6 million, during the years ended December 31, 2025 and 2024, respectively.
Loss Contracts
A contract loss occurs when the current estimate of the consideration that we expect to receive is less than the current estimate of total estimating costs to complete the contract. For purposes of determining the existence of or amount of a contract loss, we consider total contract consideration, including any variable consideration constrained for revenue recognition purposes. We may experience favorable or unfavorable changes to contract losses from time to time due to changes in estimated contract costs and modifications that result in changes to contract price. We recorded net losses related to contracts with customers of $22.6 million and $28.1 million for the years ended December 31, 2025 and 2024, respectively.
The status of these loss contracts was as follows:
•Our IM-1 mission contract for lunar payload services, became a loss contract due to estimated contract costs exceeding the estimated amount of consideration that we expected to receive. The contract was successfully completed in February 2024. As a result of a successful mission, previously constrained variable consideration of $12.3 million as of December 31, 2023 was released and approximately $11.6 million was recognized as revenue during the first quarter of 2024. For the year ended December 31, 2024, changes in estimated contract costs resulted in an additional $5.7 million in contract loss.
•Our IM-2 mission contract for lunar payload services, became a loss contract in 2023 due to estimated contract costs exceeding the estimated amount of consideration that we expected to receive. The IM-2 mission associated with this contract was completed in March 2025. For the years ended December 31, 2025 and 2024, changes in estimated contract costs resulted in an additional $1.0 million and $9.9 million, in contract loss, respectively. During the third quarter of 2025, the IM-2 mission contract was closed-out and previously constrained revenue of approximately $5.5 million was recognized in revenue. As of December 31, 2024, the contract loss provision recorded in contract liabilities, current in our consolidated balance sheets was $0.9 million, and there was no contract loss provision remaining as of December 31, 2025.
•Our IM-3 mission contract for lunar payload services, became a loss contract in 2021 due to estimated contract costs exceeding the estimated amount of consideration that we expected to receive. For the years ended December 31, 2025 and 2024, changes in estimated contract costs resulted in an additional $20.1 million and $12.5 million, in contract loss, respectively. The increase in estimated contract costs was primarily driven by the alignment of the mission schedule with the completion of an internally-developed satellite to be placed in lunar orbit to meet NSN contract obligations. The period of performance for this contract currently runs through March 2027. As of December 31, 2025, this contract was approximately 85% complete. As of December 31, 2025 and 2024, the contract loss provision recorded in contract liabilities, current was $6.5 million and $7.0 million, respectively, in our consolidated balance sheets.
•Our IM-4 mission contract for lunar payload services, became a loss contract during the second quarter of 2025 due to estimated contract costs exceeding the estimated amount of consideration that we expect to receive. For the year ended December 31, 2025, changes in estimated contract costs resulted in $1.4 million in contract loss. As of December 31, 2025 this contract was approximately 32% complete. The period of performance for this contract currently runs through August 2028. As of December 31, 2025, the contract loss provision recorded in contract liabilities, current was $0.5 million and $0.4 million in contract liabilities, non-current in our consolidated balance sheets.
•The remaining loss contracts are individually and collectively immaterial.
Remaining Performance Obligations
Remaining performance obligations represent the remaining transaction price of firm orders for which work has not been performed and excludes unexercised contract options. As of December 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $102.8 million. The Company expects to recognize revenue on approximately 60-65% of the remaining performance obligations over the next 12 months, 35%-40% in 2027 and the remaining thereafter. Remaining performance obligations do not include variable consideration that was determined to be constrained as of December 31, 2025 due to the uncertainty of achieving performance milestones or other factors not yet resolved.
For time and materials contracts and cost reimbursable contracts, we have adopted the practical expedient that allows us to recognize revenue based on our right to invoice; therefore, we do not report unfulfilled performance obligations for time and materials agreements and cost reimbursable agreements.
Grant Revenue and Related Matters
In April 2025, the Texas Space Commission (“TSC”) selected Intuitive Machines for a grant up to $10.0 million from the Space Exploration and Research Fund. This funding supports the development of an Earth reentry vehicle and orbital fabrication lab designed to enable microgravity biomanufacturing and is intended to serve as a critical risk-reduction platform for the Company’s future lunar sample return missions. Under the TSC grant, the Company will apply up to $10.0 million in funds pursuant to budget periods defined in the TSC award through June 30, 2026 as reimbursement for costs incurred in completing the tasks, specified by the Company, to complete the design of the Earth reentry vehicle. The TSC can terminate the TSC award for convenience. Under such a termination, the Company will be permitted to seek reimbursement of valid costs incurred through the date of termination. During the year ended December 31, 2025, the Company recognized grant revenue of $2.9 million and corresponding expenses included in cost of revenue on the consolidated statement of operations. As of December 31, 2025, the grant receivable was $2.9 million, and is included in trade accounts receivables on the consolidated balance sheet.Free Sentinel
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 25, 2025 | |
| 2023 | Mar 25, 2024 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.