IM-2 Lunar Lander Tips Over After Landing; Revenue Rises 14%

Intuitive Machines reported a 14% year-over-year revenue increase for 1Q25, reaching US$62.5 million, and disclosed findings from the IM-2 lunar lander anomaly. The incident occurred during the Mar. 6 landing on the Moon’s south pole, where the spacecraft tipped over, ceasing operations within 12 hours of touchdown.

The update, delivered during the company’s May earnings call, highlighted lessons from the mission and progress on lunar initiatives and diversification efforts.

The IM-2 mission was Intuitive Machines’ second lunar landing under NASA’s Commercial Lunar Payload Services (CLPS) program and set the record for the southernmost lunar landing to date. However, the Nova-C lander experienced signal noise and distortion from its altimeters during final descent, leading to inaccurate altitude readings.

“There was signal noise and distortion from the altimeters during final descent that did not allow for accurate altitude readings,” says Steve Altemus, CEO, Intuitive Machines. Compounding the issue, low sun angles in the south polar region created long shadows, reducing the precision of the optical landing system. “Crater features appeared differently at lower altitudes under those lighting conditions than in NASA reference imagery,” Altemus explained.

To address these challenges, the upcoming IM-3 mission, scheduled for 2026, will incorporate redundant altimeters with more robust testing, a lighting-independent velocity sensor, and an expanded crater database for improved terrain recognition. Altemus confirmed these upgrades would not delay the mission but noted a “slight” cost increase, without specifying figures.

While some IM-2 payloads completed partial tests—such as a NASA drill mechanism that could not fully operate—the company remains in discussions with NASA and other customers regarding success-based payments worth up to US$14 million. “We hope to finalize these discussions by the end of the quarter or early next quarter,” Altemus added.

Beyond lunar operations, Intuitive Machines is accelerating diversification. The company is designing an orbital transfer vehicle based on the Nova-C platform for a government customer and collaborating  with the Air Force Research Laboratory on JETSON, a spacecraft utilizing nuclear electric propulsion.

Altemus also pointed to potential shifts in NASA’s Artemis program, which could phase out the Space Launch System and Orion after Artemis 3 in favor of commercial alternatives. “With the reformulation of Artemis, there is a place for heavy cargo delivery to put infrastructure on the surface of the Moon. We are playing right into that reformulation with these capabilities,” Altemus said.

In its data services division, the company recognized US$4.5 million in revenue from Near Space Network Services (NSNS) milestones and secured an US$18 million task order for future deliverables. Progress continues on a Lunar Data Relay Constellation, with integration milestones completed for the first of five planned satellites.

The company ended the first quarter with US$373.3 million in cash and reported US$13.3 million in free cash flow, supported by US$19.4 million in operating cash flow and US$6.1 million in capital expenditures. Its backlog rose 22% year over year to US$272.3 million.