Shares of Intuitive Machines (NASDAQ: LUNR) plummeted 5.10% in intraday trading on Tuesday following the release of disappointing full-year 2024 financial results and a subsequent analyst downgrade. The lunar technology company, which has been at the forefront of NASA's commercial lunar payload services, faced investor scrutiny as it grapples with profitability challenges.

Intuitive Machines reported a significant increase in revenue for 2024, reaching $228.0 million, up 187% from the previous year. However, the company swung to a net loss of $344.3 million, a stark contrast to the $60.5 million profit recorded in 2023. This translated to a loss of $4.30 per share, compared to a profit of $3.43 per share in the prior year.

Adding to the negative sentiment, Deutsche Bank adjusted its price target for Intuitive Machines to $12 from $13, while maintaining a Hold rating on the stock. This adjustment reflects growing concerns about the company's path to profitability, despite its strong revenue growth.

Despite the current setback, Intuitive Machines' management remains optimistic about the company's future. During the earnings call, CEO Stephen Altemus highlighted the company's robust cash position of $385 million as of March 10, 2025, following recent warrant exercises. He also emphasized the company's focus on expanding into data services and diversifying its customer base beyond NASA, including potential opportunities in national security space.

As Intuitive Machines continues to navigate the challenges of commercializing lunar missions and space-based services, investors will be closely watching the company's progress towards achieving positive adjusted EBITDA, which management targets for 2026. The stock's performance in the coming months may hinge on the company's ability to demonstrate a clear path to profitability while capitalizing on the growing opportunities in the space economy.