Intuitive Machines (LUNR) Stock Falls 16% After $175M Equity Investment

Intuitive Machines, Inc. (NASDAQ: LUNR) saw its shares tumble sharply on Wednesday, February 25, 2026, despite announcing a $175 million strategic equity investment led by global institutional investors. The stock fell approximately 16% during morning trading, dropping from a previous close of $18.90 to around $15.80, as investors reacted negatively to the dilutive nature of the equity raise. The selloff came even as the broader market posted modest gains, with the S&P 500 rising 0.48% and the Nasdaq climbing 0.94% on the same day.

The $175M Investment: What It Means for Intuitive Machines

Intuitive Machines announced it has entered into a definitive securities purchase agreement to issue and sell Class A common stock in exchange for $175 million in fresh capital, with the transaction expected to close on February 27, 2026.

The company said the funds will be used to support revenue expansion and invest in communications and data processing network technologies, building on its January acquisition of Lanteris Space Systems. CEO Steve Altemus described the ambition as building “a scalable infrastructure platform from low-Earth orbit to the Moon and into deep space,” with the investment accelerating integration of the combined company’s capabilities.

The capital raise is specifically intended to expand Intuitive Machines’ Near Space Network Services and grow its footprint in geostationary orbit, around the Moon and Mars, and in on-orbit data processing and edge computing.

A key focus will be investment in Lanteris’ satellite platforms, particularly the 1300 series, which the company sees as a vehicle for entering high-margin recurring revenue markets. Targeted programs include the Golden Dome initiative, the Tracking and Data Relay Satellite System (TDRS), and the Mars Telecommunications Orbiter.

Despite the strategic rationale, markets responded with a sharp selloff, as equity raises of this size typically signal dilution for existing shareholders. The stock had already shown volatility in recent weeks following the $800 million Lanteris deal and reports of the CEO selling $1.4 million in shares, adding to investor caution heading into the announcement.

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LUNR Stock Brief: Price, Trends, and Key Metrics

As of 10:19 AM EST on February 25, 2026, LUNR was trading at $15.80, down $3.10 or 16.40% on the day, with an intraday range of $15.60 to $16.76. Volume stood at 8.13 million shares against an average daily volume of approximately 10.25 million, reflecting elevated but not extreme activity for a down day of this magnitude.

The stock’s 52-week range of $6.14 to $23.32 illustrates the significant volatility that has characterized LUNR throughout the past year, with the current price sitting well below the one-year analyst target estimate of $18.89.

From a fundamentals perspective, LUNR remains unprofitable, with a trailing EPS of -$2.46 and a profit margin of -94.38%. Revenue for the trailing twelve months stood at $219.94 million, with a net loss of $193.22 million.

The company holds $621.97 million in total cash as of the most recent quarter, which will be further bolstered by the $175 million raise, though its levered free cash flow remains negative at -$20.14 million. The market cap intraday was approximately $2.32 billion, with an enterprise value of $1.02 billion.

Analyst sentiment remains broadly constructive despite the day’s decline. Keybanc most recently maintained an Overweight rating on January 28, 2026, raising its price target from $20 to $26. The top-rated analyst on the stock, Cantor Fitzgerald, also holds an Overweight rating.

With a consensus average price target of $18.89 and a high target of $26.00, analysts see meaningful upside from current levels – though the company’s next earnings report, scheduled for March 19, 2026, will be a key test of investor confidence in its post-Lanteris growth narrative.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.