Key Points

Intuitive Machines reported revenue down year over year, but the company's free cash flow was a pleasant surprise. The company sees new government opportunities on the horizon. Intuitive Machines remains a speculative stock, but investors have reason to be excited about the outlook. 10 stocks we like better than Intuitive Machines ›

Space stockIntuitive Machines (NASDAQ: LUNR) posted positive free cash flow for the first quarter and forecast continued gains in the quarters to come.

Investors are buying in, sending Intuitive shares up 30% as of 10:15 a.m. ET.Image source: Getty Images.

Expanding into new markets

Intuitive Machines is focused on delivering payloads, data transmission, and space infrastructure, with an emphasis on the moon.

The company generated $62.5 million in revenue in the quarter, down 14% year over year and slightly below what Wall Street had expected. But Intuitive Machines said it generated $13.3 million in free cash flow in the period, ending the quarter with $373.3 million in cash on its books.

Intuitive also said it expects positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 2026, fueled by a growing interest in moon exploration.

CEO Steve Altemus said in a statement:

The evolving federal landscape, including shifting NASA priorities, presents a clear opportunity for Intuitive Machines. We're leveraging our track record to expand into adjacent markets like National Security Space and other nonlunar domains. This diversification builds on our core strengths and positions us as a broader infrastructure and data services provider across the space economy.

Is Intuitive Machines stock a buy?

The free cash flow was a pleasant surprise. The company said it was driven by the timing of milestone payments, as well as improving efficiency. How much of it was a timing issue, as opposed to the start of a permanent trend, will play out in the quarters to come.

Intuitive Machines is a young, speculative company, and this stock is suited only for those who can handle turbulence. Even with Tuesday's gains, the stock is still down more than 30% for the year, and off 85% from its all-time high.

The company is slowly establishing itself, but questions remain about whether Intuitive Machines has the right stuff to evolve into a consistently profitable, growing space powerhouse. Those interested in buying in should limit this stock to a small part of a well-diversified portfolio.

Should you invest $1,000 in Intuitive Machines right now?

Before you buy stock in Intuitive Machines, consider this:

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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Intuitive Machines Stock Is Going to the Moon Today was originally published by The Motley Fool

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