Intuitive Machines

LUNR

Market cap $1.39B

I remain bullish on Intuitive Machines despite the stock's 30% decline this year. I believe the market is misinterpreting the lessons from past missions and overlooking key improvements. A deep dive into the IM-1 and IM-2 landing anomalies reveals two distinct root causes. One was a simple procedural error, while the other was a complex technical challenge. We analyze the comprehensive hardware, software, and procedural overhauls for the upcoming IM-3 mission, which are designed to directly address the specific failure points of the previous landings.

Intuitive Machines (LUNR 6.28%) stock scored a 2.5% increase through 11:45 a.m. ET Wednesday after the space company announced (yesterday) its latest achievement toward supporting a Near Space Network satellite relay linking Earth with the moon.

HOUSTON, Oct. 07, 2025 (GLOBE NEWSWIRE) -- Intuitive Machines, Inc. (Nasdaq: LUNR, “Intuitive Machines,” or the “Company”), a leading space technology and infrastructure services company, today announced it has been appraised at Capability Maturity Model Integration (CMMI®) Maturity Level 3 for software development. In addition to meeting the requirements for this maturity level, the rating demonstrates that Intuitive Machines meets NASA's standards for Class A human spaceflight together with well-defined and consistently applied engineering processes.

Intuitive Machines (LUNR) is undervalued, trading at 4x sales, with low expectations and a strong cash position despite recent setbacks. LUNR is positioned for at least 30% revenue growth in 2026, with positive free cash flow expected in the second half of that year. Risks include execution missteps and potential dilution, but LUNR's debt-free balance sheet and cash reserves provide a solid cushion.

As of Oct. 3, 2025, two stocks in the industrials could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

Strategic deal expands deep space navigation and constellation management capabilities, accelerating delivery of secure data relay from the Moon to Mars Strategic deal expands deep space navigation and constellation management capabilities, accelerating delivery of secure data relay from the Moon to Mars

I rate Intuitive Machines, Inc. as Hold due to a misalignment between strategic ambitions and operational execution, despite a strong cash position. Recent results showed disappointing revenues and negative margins, with mission delays and cost overruns weighing on near-term performance and guidance. The company's growing contract pipeline and internalization of satellite production offer long-term potential but require flawless execution and significant upfront investment.

As the market hovers near its all-time highs, it's tempting to sit on your cash and wait for a downturn before buying more stocks. That might be the prudent move, but there are still plenty of stocks trading at a discount to the broader indexes and their industry peers.

The space sector was active last week with earnings reports, offerings and launches.

Shares of Intuitive Machines Inc. dropped nearly 15% on Thursday after the space company, which made history by successfully placing the first commercial lander on the moon, announced an upsized private offering, surprising investors who expected it to be funded through the end of the year.