NOTE 16 - SEGMENT INFORMATION

The Company operates in one operating segment and one reportable segment underpinned by three core pillars (delivery services, data transmission services, and infrastructure as a service) that have similar capabilities, customers, and economic characteristics. The Company’s chief operating decision-maker (“CODM”) is our chief executive officer. Our CODM reviews and evaluates consolidated Net income (loss), a U.S. GAAP measure, and Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (“Adjusted EBITDA”), a non-GAAP measure, for purposes of evaluating financial performance, making operating decisions, allocating resources, and planning and forecasting for future periods. Although we utilize a non-GAAP measure of Adjusted EBITDA to evaluate our ability to generate cash and as an alternative measure of profitability, our primary profitability measure is the GAAP measure of Net income (loss).

All of the Company’s long-lived assets are maintained in the U.S. We geographically disaggregate our revenues based on the customer’s country of domicile. Substantially all of our revenues are derived from customers in the U.S., and our revenues from foreign customers were not material for the years ended December 31, 2024 and 2023. Refer to Note 2 for information regarding our major customer and Note 3 for further information on revenues.

The following presents the significant financial information with respect to the Company’s reportable segment for the years ended December 31, 2024 and 2023 (in thousands):


	Year Ended December 31,
	2024		2023
Revenue	$	228,000	$	79,551
Less:
Cost of revenue (excluding depreciation)(1)	225,231		103,993
Depreciation	1,859		1,376
Impairment of property and equipment	5,044		964
General and administrative expense (excluding depreciation):
Sales and marketing expense(2)	3,122		5,389
Other general and administrative expense(3)	50,140		28,948
Total general and administrative expense (excluding depreciation)	53,262		34,337

Operating loss	(57,396)		(61,119)

Interest income (expense), net	180		(823)
Change in fair value of earn-out liabilities	(120,124)		66,252
Change in fair value of warrant liabilities	(77,651)		15,435
Change in fair value of SAFE Agreements	—		(2,353)
Loss on issuance of securities	(93,136)		(6,729)
Other income (expense), net	1,242		(483)
Income tax expense	(37)		(40)
Net income (loss)	(346,922)		10,140

(1) Cost of revenue consists primarily of direct material and labor costs, launch costs, manufacturing overhead, freight expense, and other personnel-related expenses, which include employee compensation and benefits and stock-based compensation expense.

(2) Sales and marketing expense primarily includes business development and research and development related expenses such as, employee compensation and benefits, subcontract costs, marketing, and materials and supplies costs. Costs incurred for business development were $1.7 million and $4.4 million and research and development costs were $1.4 million and $1.0 million for the years ended December 31, 2024 and 2023, respectively.

(3) Other general and administrative expense primarily includes all other employee compensation and benefits, stock-based compensation, facilities costs, professional services, software licenses, and other administrative costs.

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Intuitive Machines, Inc. Segments Disclosure

About Segments Disclosures

Other Available Disclosures