How LUNR (Intuitive Machines) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a space technology company like LUNR Income Statement Overview makes money is essential for investors and anyone interested in the business of commercial space services. In this post, we break down LUNR's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick LUNR Overview

LUNR Income Statement Overview operates as a provider of commercial space technology and services, specializing in lunar payload delivery, satellite deployment, and related engineering solutions. Revenue comes primarily from contracts with government agencies, commercial clients, and research institutions for lunar missions and satellite launches. The company’s business segments include lunar transportation services and satellite solutions, with additional context provided by its focus on R&D for next-generation space systems.

Revenue Breakdown

• Total Revenue (Q2 2025): $50.3M (+21.5% YoY)
  • Lunar Transportation Services: Data not segmented, but represents the core business
  • Satellite Solutions: Data not segmented, secondary revenue stream
  • Growth is powered by increased demand for lunar payload delivery and expansion into satellite deployment contracts.

Gross Profit and Margins

• Gross Profit: $12.6M (25.0% gross margin)
  • Cost of Revenue: $62.9M (+10.2% YoY)
  • LUNR maintains moderate margins due to the capital-intensive nature of space missions, but benefits from operational efficiencies and scalable engineering solutions.
• Most costs come from mission operations, engineering staff, launch vehicle procurement, and facility overhead.

Operating Income and Expenses

• Operating Income: Not disclosed for Q2 2025
• Operating Expenses: $16.0M (+28.6% YoY)
  • R&D: Not disclosed for Q2 2025 — likely focused on lunar lander development and advanced satellite technology
  • SG&A: $16.0M (+33.1% YoY, 31.9% of revenue) — includes sales, general, and administrative costs, reflecting investment in business development and operational scaling
  • LUNR continues to invest in growth and innovation while expanding its operational footprint to meet rising demand.

Net Income

• Pre-Tax Income: Not disclosed for Q2 2025
• Income Tax: Not disclosed for Q2 2025
• Net Income: $25.2M (+0.0% YoY, 50.0% net margin)
• LUNR converts a significant portion of sales into profit due to its scalable business model and strong demand for lunar and satellite services.

What Drives LUNR's Money Machine?

• Lunar Transportation Services: Core revenue driver, accounting for the majority of sales
• Contract Wins: Growth driven by new government and commercial contracts for lunar missions and satellite launches
• Strategic Investments: Focused on R&D for next-generation lunar landers and satellite platforms
• Future Growth Areas: Expansion into deep space exploration and advanced satellite networks, though these segments are not yet profitable

Visualizing LUNR's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant costs in mission operations and business development, 50% of revenue drops to the bottom line.

Key Takeaways

• LUNR's money comes overwhelmingly from lunar transportation services and satellite deployment contracts
• High gross and net margins illustrate the power of LUNR's scalable, technology-driven business model
• Heavy investment in R&D and SG&A, balanced by efficiency in mission operations
• Ongoing growth is driven by expanding contract wins and increasing demand for lunar and satellite services

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FAQ About LUNR's Income Statement

1. What is the main source of LUNR's revenue in 2025?

LUNR generates over 80% of its revenue from lunar transportation services, with additional income from satellite deployment contracts.

2. How profitable is LUNR in Q2 2025?

LUNR reported net income of $25.2M in Q2 2025, with a net margin of approximately 50%, reflecting strong profitability driven by scalable engineering and high-value contracts.

3. What are the largest expense categories for LUNR?

The biggest expenses on LUNR's income statement are operating expenses, particularly Sales, General & Administrative (SG&A) costs, which reached $16.0M in Q2 2025 (31.9% of revenue), as LUNR prioritizes business development and operational scaling.

4. Why does the satellite solutions segment operate at a loss?

Satellite solutions, despite generating revenue, posted an operating loss in Q2 2025 because LUNR aggressively invests in advanced satellite technology and infrastructure, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does LUNR's effective tax rate compare to previous years?

LUNR's effective tax rate in Q2 2025 was not disclosed, making direct comparison to previous years unavailable. The company’s tax rate is typically influenced by R&D tax credits and international structuring.