Intuitive Machines Surges 16% on Record Quarter and Positive Free Cash Flow; AST SpaceMobile Falls 3%, Rocket Lab Slips 2%
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A record quarter is pulling Intuitive Machines (NASDAQ:LUNR) away from the rest of the space group amid a broad pullback in growth stocks. Intuitive Machines stock is at $14.19, up 16% in early morning trading. The company released its Q3 2026 results before the open on November 12 and beat expectations on both revenue and loss per share.
Third-quarter revenue at Intuitive Machines reached $269.35 million, exceeding the $247.56 million consensus estimate and rising 413.7% from a year earlier. Satellite production from the January Lanteris acquisition drove most of that growth, adding $215.12 million of revenue. CEO Steve Altemus declared, “In the third quarter, we delivered record financial performance across the board.”
Record Cash Flow and Backlog Power Intuitive Machines
Cash generation sets this report apart. Intuitive Machines produced operating cash flow of $66 million and free cash flow of $33 million, a record. Backlog at the company climbed to a record $1.87 billion from $213 million at December 31, 2025.
NASA also named Intuitive Machines a vendor on its $10 billion Commercial Lunar Payload Services (CLPS) 2 contract. Looking ahead, Intuitive Machines expects full-year 2026 revenue of $920 million to $950 million along with positive adjusted earnings before interest, taxes, depreciation and amortization.
Skeptics have reasons for caution about Intuitive Machines. A $30.01 million gain from the change in fair value of warrant liabilities helped the company post a loss of $0.02 per share, narrower than the $0.11 loss analysts expected. Acquisition costs and a non-recurring legal expense partly offset that gain, yet the company’s $34.2 million operating loss shows the core business still isn’t profitable.
One-time program adjustments also raised gross margin at Intuitive Machines. Free cash flow at the company stands at negative $112.3 million year to date, even after the strong quarter.
AST SpaceMobile and Rocket Lab Give Back Ground
Moving the other way is AST SpaceMobile (NASDAQ:ASTS), which reported Q3 2026 results on November 9 with revenue that missed expectations. AST SpaceMobile stock is at $35.43, down 3%. That decline leaves AST SpaceMobile well behind Intuitive Machines.
Meanwhile, Rocket Lab (NASDAQ:RKLB | RKLB Price Prediction) is giving back part of a November 11 rally that followed a Morgan Stanley note looking past third-quarter margin noise to the company’s Neutron rocket. Rocket Lab stock is at $65.15, down 2%. Both declines trail the gain at Intuitive Machines, and Rocket Lab’s slip comes despite record revenue in its November 9 report.
Growth stocks are generally lower, with technology the weakest sector after Jensen Huang stepped down as CEO of NVIDIA (NASDAQ:NVDA). SpaceX (NASDAQ:SPCX) stock is little changed against that background. Risk-off selling across growth names offers the clearest explanation for the declines at AST SpaceMobile and Rocket Lab.
How Intuitive Machines Differs From Its Space Peers
Intuitive Machines has grown from a lunar lander specialist into what management calls a “next-generation space prime”. The company runs lunar delivery missions under NASA’s CLPS program. It also builds the Altus lunar data relay constellation, produces satellites through Lanteris and operates ground stations through Goonhilly Earth Station and COMSAT.
AST SpaceMobile follows a narrower path, building its BlueBird constellation to deliver cellular broadband directly to ordinary phones through partnerships with mobile network operators. That plan requires heavy capital spending, and the company is also developing its own BlackLift rocket.
Rocket Lab sits between the two as an end-to-end space company built around the Electron small-launch rocket, the Neutron medium-lift rocket in development and a spacecraft and components business. A pending acquisition of a satellite communications company would add its own constellation and recurring revenue. SpaceX operates at far greater scale, combining launch, Starlink broadband and an artificial intelligence infrastructure segment.
Backlog Conversion Is the Next Test for Intuitive Machines
Intuitive Machines now faces the test of turning its record backlog into revenue on schedule, which management has made its focus. Altemus declared, “As we look to turn the corner into 2027, we remain laser focused on IM-3 along with our first Altus-1 lunar satellite, which remains on track for a planned launch in the March/April timeframe.”
Record cash generation, a much larger backlog and the CLPS 2 vendor slot for Intuitive Machines give the bulls plenty to point to. The bears counter with a warrant-aided bottom line, one-time margin help, negative free cash flow for the year so far and the material weaknesses in internal control over financial reporting the company disclosed. For prospective LUNR stock investors, it could make sense to wait until the IM-3 mission completes.
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David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk. His work has appeared in 24/7 Wall St., The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, MarketScreener, TalkMarkets, Finmasters, and others. With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
