Intuitive Machines, Inc. (LUNR) Earnings Call Transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Intuitive Machines Second Quarter 2026 Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to Stephen Zhang, Head of Investor Relations. Go ahead.

Good morning. Welcome to the Intuitive Machines Second Quarter 2026 Earnings Call. Chief Executive Officer, Steve Altemus; and Chief Financial Officer, Pete McGrath, are leading the call today. Before we begin, please note that some of the information discussed during today's call will consist of forward-looking statements setting forth our current expectations with respect to the future of our business, the economy and other events. The company's actual results could differ materially from those indicated in any forward-looking statements due to many factors. These factors are described under forward-looking statements in the company's earnings press release and the company's most recent 10-K and 10-Q filed with the SEC. We do not undertake any obligation to update forward-looking statements. We also expect to discuss certain financial measures and information that are non-GAAP measures as defined in the applicable SEC rules and regulations. Reconciliations to the company's GAAP measures are included in the earnings release filed on Form 8-K. Finally, we posted an earnings call presentation to our website, which provides additional context on our operational and financial performance. You can find this presentation on our Investor Relations page at www.intuitivemachines.com/investors. Now I'll turn the call over to Steve Altemus.

Good morning, and thank you for joining us. We delivered a strong quarter, highlighted by $206 million of revenue, more than 4x the prior year, exited the quarter with approximately $1.8 billion of backlog and have positioned the company for the next phase of growth. Our backlog now spans civil, commercial and national security customers, and we have more than 80 spacecraft under contract. Based on that visibility, we are reaffirming and remain confident in our $900 million to $1 billion revenue outlook and our expectation for positive adjusted EBITDA for the full year. Two years ago, Intuitive Machines returned America to the moon for the first time since Apollo. Last year, we became the first company to land a second time at the Lunar South Pole. Those missions demonstrated our ability to deliver complex space missions that advance the state of lunar exploration. That was never our ultimate destination. It was the foundation for building the next-generation space prime, a fundamentally different company. Our strategy has evolved alongside the market. As our customers increase their presence across LEO, GEO, cis-lunar and deep space, their need is now for more than individual missions alone. We believe the next era of space will require a next-generation space prime capable of building spacecraft, connecting them through resilient networks and operating the resulting infrastructure across the space ecosystem. Over the past 18 months, every strategic decision we have made has been focused on building that next-generation space prime. The Lanteris acquisition transformed Intuitive Machines to one of the nation's leading satellite manufacturers, adding proven production capabilities. The KinetX acquisition added mission operations, flight dynamics, deep space precision navigation and satellite constellation management, allowing us to support customers throughout the operational lives of their missions. Our most recent acquisition of Goonhilly Earth Station and COMSAT expanded our ground segment communications infrastructure with globally recognized deep space ground systems that strengthen our ability to deliver resilient communications and navigation services from earth orbit to cis-lunar space and beyond. With these acquisitions, Intuitive Machines is an integrated aerospace company capable of building, connecting and operating a system of systems at space infrastructure. We believe that integration is becoming increasingly valuable as customers move beyond individual spacecraft toward complete operational systems. Combined with our existing leadership in lunar transportation and infrastructure, we believe these capabilities have expanded our addressable market from roughly $20 billion only a few years ago to well over $150 billion across civil, commercial and national security space sectors. As part of our strategy, we are investing today to establish capabilities that we believe will generate value over many years. This quarter, those investments include inventory purchases, production capacity increases and manufacturing efficiency initiatives. Customers are increasingly seeking greater production volume and faster delivery. Companies can no longer rely solely on the traditional model of waiting until a procurement or contract is awarded to begin preparing. Our investments position us to respond more quickly and deliver on our customers' time lines. NASA Moon Base is an example, an excellent example. While we begin by building and landing lunar delivery systems for NASA under the CLPS contract, we've since expanded our capability by providing communications and navigation systems for NASA and other government customers under the Near Space Network Services contract, and we continue to evolve towards production-ready landing systems and satellites in support of the rapid cadence of moon-based missions required. Across manufacturing, communications and mission operations, these investments support our objective of delivering and operating space infrastructure and expanding long-term durable operational revenue. The effect of these investments can be seen in the recent uptick in bookings this quarter. As of this call, Intuitive Machines generated $1.7 billion in bookings this year, including $1.2 billion in new bookings in quarter 2 through today. This marks the highest quarterly bookings in company history and validates our strategy by expanding the infrastructure base we are building for the future. Quarter 2 bookings also include partial awards with authority to proceed. We anticipate these ATPs will contribute an additional $300 million in bookings through the second half of the year as the contracts are fully definitized. Our diversification strategy and capability investments have expanded our total addressable market, moving us beyond a primarily NASA and civil lunar delivery company to one able to address the broader space ecosystem. This quarter's bookings reflect that diversification. Our $1.8 billion Q2 backlog is split approximately 37% civil space, 49% commercial space and 14% national security space. Q2 bookings through today were composed of approximately 20% civil, 50% commercial and 30% national security space, highlighting our continued diversification. As you've heard me talk about on previous earnings calls, our strategy is organized around 3 integrated pillars: build, connect and operate space infrastructure. Let me walk through each. The first pillar, build begins with the spacecraft and physical infrastructure that make our broader strategy possible. Today, we are applying our engineering and production discipline across lunar landers, government and commercial communication satellites, national security spacecraft, orbital transfer vehicles and deep space systems. Beginning with our civil portfolio, NASA continues to advance its long-term vision for sustained lunar exploration through the Moon Base initiative. Earlier this year, we were awarded the CT4 mission. And this quarter, NASA selected Intuitive Machines for the CS-8 mission, extending our lunar delivery cadence beyond 2028 into 2030. These awards represent our fifth and sixth missions under the CLPS contract. Looking ahead, we expect to compete for 4 additional CLPS task order opportunities this year, including the 10-year CLPS 2 multi-award follow-on contract. These opportunities represent far more than individual delivery missions. They reinforce the transition from demonstration missions toward higher cadence, repeatable and reliable lunar transportation supporting long-term operations on the moon. We also began work with NASA under our first contract supporting the reconfiguration of the Gateway power and propulsion element for NASA's flagship Mars mission, SR-1 Freedom. This program demonstrates how spacecraft developed for lunar exploration can be adapted for entirely new missions, in this case, a deep space Mars mission, extending the value of existing technologies while reducing development risk for future exploration architectures. At the same time, we continue operating the Lunar Reconnaissance Orbiter camera and ShadowCam programs. providing mission operations, data collection and lunar surface analysis. Next week, we'll fly over and image the impact area of a recently disposed upper stage on the surface of the moon. As lunar activity accelerates, we see significant opportunities to expand these capabilities through future lunar surveying, mapping and data repository services supporting NASA's Artemis program and Moon Base initiatives. Now moving to national security space. This quarter, we successfully delivered all 16 satellites supporting the SDA Tranche 1 tracking layer while continuing production on Tranche 2 tracking layer. Earlier this year, we expanded that production line with awards for the SDA Tranche 3 tracking layer, representing another 18 satellites. And as of this earnings call, we were awarded an additional 18 satellites supporting AMDT-3, part of the nation's Golden Dome architecture. In addition, we received ATP on an award for 2 restricted 300 Series spacecraft to an undisclosed customer. With these recent awards, we have more than 70 IM-300 spacecraft under contract today. This represents an unprecedented number of IM-300 Series spacecraft simultaneously in production. This month, we also received authority to proceed for continued development of our Nebula orbital transfer vehicle on a Phase 3 contract for a government customer. This award will take the OTV design from paper to full-scale spacecraft development, integration and testing all the way through flight. Collectively, these programs demonstrate our ability to manufacture spacecraft at production scale while supporting some of the nation's highest priority national security missions. In commercial space, we continue to see strong demand for our flight proven IM-1300 series platform. In quarter 2, we were awarded 3 geostationary communication satellites from an undisclosed customer valued at over $600 million over the next 30 months. SiriusXM-11 also launched and deployed during the quarter, and we are on track to hand that spacecraft over to the customer later this month, continuing the long heritage of one of the industry's most reliable commercial communication satellites. Beyond traditional communication satellites, we believe the same high-power spacecraft architecture positions us well for the emerging commercial orbital data center market. We are currently discussing strategic partnerships to bring our expertise and satellite production capability to this burgeoning market. The second pillar is Connect, linking spacecraft ground systems and users through resilient communications and navigation networks. As activity expands beyond earth orbit, communications, navigation and data transport become essential infrastructure rather than supporting capabilities. Through near space network services, our lunar data relay architecture, Goonhilly, COMSAT and our investments in resilient communication networks, we are building systems that connect spacecraft from earth orbit to cis-lunar space and ultimately to the lunar surface. These investments are designed to support many customers across many missions rather than a single contract. At the Lunar Frontier, Altus-1, our first lunar communications relay satellite remains in production and is scheduled to launch aboard IM's Mission 3 during the first quarter of 2027. As with any launch manifest, timing will reflect spacecraft readiness, launch vehicle availability and NASA stakeholder priorities. As part of the acceleration associated with Moon Base, development continues on Altus-2 through 5. We now plan to deploy these remaining 4 satellites together in 2028 to complete our lunar communications constellation ahead of schedule. On Earth, we continue enhancing the ground segment of our near space network, including installation of our first of several tri-band antenna feeds, starting with Catawissa, Pennsylvania and integrating the newly acquired Goonhilly, U.K., and COMSAT U.S. facilities into our network. These investments extend our ability to provide secure communications, navigation, timing and data relay services across earth, lunar, cis-lunar and deep space operations. The third pillar is operate. We believe the path toward durable recurring revenue is to not only develop and deliver systems, it is to then operate the infrastructure throughout its life cycle. Through KinetX, with our mission operations expertise, lunar navigation capabilities, communications infrastructure and future network operations, we are positioning Intuitive Machines to generate recurring operational revenue from the systems we deploy. Near Space Network Services, our operations supporting LROC and ShadowCam and the continued expansion of our communications architecture demonstrate that evolution. As additional infrastructure comes online, we expect to expand communications navigation, hosted payload mission operations and data services that deepen customer relationships and increase recurring revenue opportunities. Whether supporting NASA's evolving Moon Base, expanding national security space capabilities, enabling commercial communications or helping commercialize the next generation of space communications networks, each opportunity builds upon capabilities that already exist within the company. As we add missions, assets and customers, we strengthen the platform and expand the opportunity to provide long-duration services and revenue. We believe this transition from delivering hardware to operating infrastructure represents one of the largest value creation opportunities in the emerging space economy. Intuitive Machines is positioned to lead that transition because we now bring spacecraft manufacturing, communication networks, navigation expertise, mission operations and ground infrastructure together within one company. Our objective is not simply to win the next mission, it's to build, connect and operate the systems that enable the missions that follow. This is the next-generation space infrastructure prime we are building. And with that, I'll turn the call over to Pete for a review of our financial results.

Thank you, Steve, and thanks to everyone joining us today. Q2 demonstrates how the business is changing as we scale across civil, commercial and national security markets. Year-over-year, we generated significant revenue growth, materially improved gross profit and adjusted EBITDA and added substantial backlog while continuing to invest ahead of customer demand. Those investments, which as Steve described, increased near-term cash usage, but they also strengthen our ability to execute the backlog we have already secured. We delivered $206 million in revenue for the quarter. That was driven primarily by execution across satellite manufacturing, CLPS missions, NSNS and OMES programs. Gross profit increased to $36 million in the quarter, up significantly from negative $12 million in the prior year. This improvement was driven by the growing contribution from our satellite business and the continued focus on cost and execution across our programs. SG&A was $60 million in the quarter, which includes approximately $11 million of share-based compensation, $8 million of acquisition-related transaction and integration costs, some additional headcount as we adjusted our growth initiatives as well as some timing on software license renewals in the quarter. Operational loss for the quarter was $47 million, driven by a higher SG&A, amortization and $14.7 million estimated at complete adjustment on the IM-4 to accommodate payload changes. Research and development was $8 million in the quarter. These investments are focused on upgrading our lunar landers, expanding our software-defined satellite architecture, increasing addressable market opportunities in GEO and system communications and supporting future high-margin infrastructure services. Q2 profitability continues to improve as adjusted EBITDA was negative $14 million compared to negative $25 million last year, driven primarily by higher margin contributions from Lanteris, partially offset by IM-4 EAC adjustments, SG&A and investment in R&D. Operating cash used was $60 million during the quarter. Operating cash reflected strategic investments in long-lead inventory to position for competitive awards, as Steve described earlier. Operating cash included approximately $17 million of accelerated inventory and infrastructure investment supporting awarded or anticipated programs, $8 million of acquisition and integration costs and $17 million associated with the IM-4 milestone payment to SpaceX. We believe the strategic investment in the quarter has strengthened our production readiness, supported recent awards and position us to convert our growing backlog into future revenue. Capital expenditures of $24 million was primarily for our NSNS satellite constellation and ground segment. Note that CapEx in the quarter includes not only our first NSNS satellite, but also upgrades to our ground segment and long lead material buys for satellites 2 through 5 as we look to accelerate the full constellation following our discussions with NASA. CapEx is expected to be at these elevated levels in the coming quarters as we continue to work on all 5 satellites. Taken together, these investments, along with timing of milestone payments received resulted in an $84 million of cash deployment during the quarter. While investments increased near-term cash usage, we believe it strengthened our ability to execute our record backlog, expand our long-term competitive position and accelerate recurring infrastructure services. Free cash flow is expected to improve throughout the second half of the year as investments stabilize and milestone receivables come in following our recent awards. We ended the quarter with $367 million in cash, which includes $235 million in net proceeds in the quarter from our at-the-market program. Total to date, we have raised $291 million gross at a VWAP of $26.81. Our current liquidity provides the capital necessary to fund current operations. Turning to growth and backlog. We exited the quarter with a record $1.8 billion in backlog, supported by $920 million in new bookings highlighted by 3 commercial GEO satellite awards, our sixth CLPS mission, CSA and 18 AMDT-3 Golden Dome satellites for L3Harris in support of their national security space customer. This backlog provides strong multi-year visibility and reflects increasing demand across both civil and national security markets. Approximately 25% to 30% of our Q2 backlog is expected to be revenue in 2026, 35% to 40% in 2027 and the remaining thereafter. Looking ahead, as Steve mentioned, we expect additional backlog growth from several large multiyear NASA and national security programs in the second half of the year, including the AMDT-3 Golden Dome award that was already booked in the third quarter. In addition, we have other ATPs with contracts pending, proposals submitted awaiting selection and expect to bid on 3 new CLPS awards later this year, along with other NASA Moon Base opportunities. As of August 6, our total share outstanding are 228.9 million with 173.2 million shares of Class A and 55.7 million shares of Class C. Moving on to guidance. We are reaffirming our full year revenue outlook of $900 million to $1 billion and continue to expect positive adjusted EBITDA for the year. Our $1.8 billion backlog provides substantial visibility into the remainder of '26. The primary variable determining where we land within the range is the timing of contract definitization and revenue conversion, not customer demand. On the profitability side, we continue to expect positive adjusted EBITDA for the full year. Our decision to reaffirm guidance reflects not only our confidence in execution, but also the benefits of a significantly more diverse business portfolio. This quarter demonstrates that Intuitive Machines is no longer dependent on a single market, customer or mission cadence for growth. We now have meaningful business across civil, commercial and national security space with $1.8 billion of backlog with a growing communication and mission operations infrastructure. Our focus for the second half is straightforward: execute the backlog, convert it into revenue while improving profitability and continue building recurring infrastructure revenue. We remain confident in our full year outlook. With that, operator, we are now ready for questions.

[Operator Instructions] And your first question comes from Griffin Boss from B. Riley Securities.

So just off the bat, I wanted to touch on backlog. You just mentioned 25% to 30% expected to convert to revenue this year, and you've already added $300 million to the backlog in 3Q. So assuming maybe even just 5% or 10% of that extra $300 million is also converted this year, you're getting relatively close to the low end of the guidance. So I just kind of want to dig into what the major swing factor is to get up to the midpoint. Are there -- is it these programs that you're bidding on that you expect to come through in the second half that are going to have immediate impact? Or is it more so is the delta primarily additional ATPs on contracts already won that you expect to flow through over the remainder of the year?

Yes. So thank you, Griffin. I would say when I look at revenue conversion, you're right. We have a very strong visibility at the bottom end of the range. The opportunities to get to the middle of the range are a couple of things. One is timing of procurements and things as they come in. We see some acceleration of that, that gives us opportunities to move higher into the range. There's also those ATPs as we definitize them and the timing of that definitization will pull revenue into this year versus if they roll later, it would defer it to next year. So that's why we're keeping, I'd say, the wider range because we see opportunities at the low end all the way through that high end.

Got it. And then just for my second -- or my follow-up, I wanted to dive into CLPS, the task orders that you're bidding on. What's the time line for bid submission of the remaining 4, I believe you said, CLPS task orders for the remainder of the year. Do you expect those to be multi-lander awards? Or are these 4 individual awards? And then also related, did you say that 1 of those 4 is expected to be an initial CLPS 2.0?

Yes, Griffin, Yes, we expect -- well, there's 2 awards -- or I'm sorry, task orders issued with draft RFPs that are coming on top of each other here for this summer, plus those are landed missions. The other mission coming out this year, a little bit later this summer, maybe early fall is the Orbiter surveyor to map the moon in replacement of the Lunar Reconnaissance Orbiter. And then there is this year, we expect the CLPS 2.0, which is estimated to be over $10 billion multi-award IDIQ. So that will be much like CLPS 1 that spans 10 years with probably an option for 5 more years, plus up about 4x from where CLPS 1 was to really get to the heavier cargo landers, and that will be multi-award. And then we think as we cross the new year into January time frame, there's the final award for CLPS 1.0, which will be a procurement called CLPS CP-32. So those are the -- what, 5 awards that we're -- or task orders that we're expecting and contracts we're expecting for the balance of the year and crossing into the new year.

And your next question comes from Jonathan Siegmann from Stifel.

Congratulations on the backlog build and the order haul. Fantastic momentum there. Can you talk a little bit about what it means to have simultaneous satellite construction? Just how similar are some of these satellites? I know there's -- you can't share too many details on what you've won, but just what does that mean for margins building this many satellites all at once?

Yes. Jonathan, the 300 series satellite is a full-on production. You hear us talking about SDA tracking layer Tranche 1, 2 and 3. Those satellites full production line, spinning off those 300 series satellites for proliferated low earth orbit constellation. We have production line for the 1300 series geosynchronous satellites, communication satellites. You heard recently, we've launched and checked out EchoStar satellite. We've launched and are checking out the SiriusXM satellites. You see them coming in lesser numbers, but full production. And then we have a series of about 80 satellites under contract. The 300 series has the bulk in production. And then we have a series of one-off satellites. Those are our spacecraft. Those are our CLPS Mission landers, which we have Mission 3, 4, 5 and 6 to build. We have then what we call the Nebula orbital transfer vehicle, which is a one-off to start with the possibility of moving that spacecraft into production later with further orders. And then we have our satellites, which we're building 5 of those Altus satellites. So you see us production in the like 50 to 70, you see those that are a handful, 5 or so to 10 and then you see the one-offs that are like 1 to 5 satellites. And that is what the production kind of layout is across the company.

Just to add one more thing to that. Steve mentioned the 300 class satellite. That's the one where we're producing 70 currently. The bulk of the non-recurring was retired with the first 16 satellites that were delivered to SDA for Tranche 1, and there's very high commonality across the BUS going forward. So that is truly more of a production run of a common satellite. So that's how we can put 70 through the factory at a given time.

And when we think about the capacity for additional orders, can you layer on more in the near term? Or do they get added to the back of the queue?

We have capacity and have been putting on additional capacity, not only here in Houston, where we're adding another 75,000 square feet of production space and manufacturing space to actually build the additional landers and satellites for the loop data relay constellation. And also, we have not yet tapped out the full 300 series production line. We have additional room to expand that throughput in that production as further orders come in. So with over 1 million square feet of manufacturing production space and office space in the company, we have ample room to grow still.

And your next question comes from Andres Sheppard from Cantor Fitzgerald.

Congratulations on the quarter. Very exciting to see the growing backlog. Steve, I wanted to maybe touch on IM since I don't think we've touched that on the Q&A. So just curious, what are the milestones left between now and the launch window? And how confident are we in that Q1 '27 launch window?

We are scheduled in the launch window January through March for Mission 3 of next year on a SpaceX Falcon 9. We still have -- we are in assembly integration and test. We are doing functional testing right now on the powered up spacecraft. We have engine hot fire once it's integrated into the vehicle to do, which is where we fire the LOX/methane engine on the lander to verify that all systems are functioning through an engine ignition. That's yet to come here in the coming month. We're finalizing with Mission 2 and the laser sensor challenges that we had there. We're finalizing the integrated suite of laser sensors, cameras, IMUs that get integrated on the vehicle for precision landing and hazard avoidance. Those are the technical tests that need to be done and proved correct and accurate before we go for launch. We've had our initial flight readiness review back in July, and we'll have a Delta flight readiness review to check out all status of all the systems in October, which will give us our green light ready to fly in the first quarter of 2027. So that's what's ahead of us, and we're really looking forward to that flight and a soft touchdown.

Excellent. That's well said. And maybe just as a quick follow-up, I wanted to touch on LTVs. How are you thinking about the opportunities here? I think it's roughly about 10% or so of the total LTV contracts that have been awarded. So just how are you thinking about these? How are you positioned and perhaps any catalysts here that we can look forward to?

Yes. The LTV contract was a massive award to 3 vendors that could bid on that $4.5 billion worth of value over a period of about 10 years, I think, with a 5-year option. The very small initial awards were issued back in May, if you recall. And talking to Moon Base initiative folks at NASA, there's a lot more activity left to go on LTV as they build greater and greater capability, and we'll wait to see when those task orders come out, and we'll bid on those and move that forward. I think the long pole or the -- what's driving the actually slow pace of the LTV is the fact that there are no heavy cargo landers available to fly the larger LTV, which was what our primary bid was. So we're working heads down to build a heavier cargo variant of our Nova class lander that can accommodate LTV flights in the future. And that's part of the road map that NASA Moon Base is looking for in Phase 2, and that's where we're positioning ourselves.

And your next question comes from Suji Desilva from ROTH Capital.

Congratulations on the strong backlog growth here. Just curious, I don't know if you talked, Pete, about the pipeline, but I mean, I'd imagine with all the backlog conversion, unclear what we have with the pipeline, but I'm sure there's a lot of opportunity ahead of you. Any quantification or understanding of the pipeline expansion here as well?

Yes, Suji, I did talk briefly about the CLPS opportunities with Griffin in the first question. We have 4 opportunities this year to bid on additional CLPS missions. Recently, there was a call in addition in our communications and networking area, there was a call for commercialization of a portion of the tracking data relay satellite service network, TDRS. We bid on the TDRS replacement. That's in K-band, Ka-band. And so we'll wait and see whether or not we'll receive that award that comes in 3 phases. And then there's some other strategic partnerships we're looking at in terms of orbital data centers that we bid, and we'll wait to hear whether or not our experience in high-power satellites wins the day, and we win that -- those development efforts for on-orbit data centers. So those are some of the major activities. I think there's one other in national security space that we're really keenly looking for. That's Andromeda. It's called the RG-XX. It's a GEO highly maneuvered geosynchronous orbit satellite for national security space. And so really exciting opportunities in front of us, all major programs, and that's yet to be seen in our backlog.

Sounds good to see you guys are very busy certainly. And then my other question is around the pipeline for the Altus satellites 2 to 5 in '28 roughly. Do those satellites imply 4 separate missions, 1 per? Or is there ability to take multiple in a mission? Any color there would be helpful.

Yes. So initially, Suji, what we had planned was the launch of Altus-1. And then our missions to fly additional satellites were opportunistic to align with the CLPS awards that we had received, and we would rideshare 2 additional satellites on every lander mission. What that did in effect was while it got the next 2 after Altus-1 up in orbit sooner, our fully operational capability was delayed out to 2029 or 2030. When we spoke to NASA, they were interested in putting on the fully operational capability. So we pulled the satellites off of our CLPS missions, negotiating with NASA for a dedicated launch to fly all 4 simultaneously on an independent mission to take all 4 of the translunar injection and then fly all 4 out and deposit them in lunar orbit, all at once to get a fully operational capability in 2028. That's the acceleration that we're talking about. So we're very excited about that and getting that network up and running in time for the Artemis missions.

And your next question comes from Edison Yu from Deutsche Bank.

One to start off housekeeping. The $600 million in GEO sats for the 3 GEO sats, is that for the C-band, related to the C-band reallocation? Or is that separate?

Yes, I have that yet undisclosed, Edison. And in the future, we'll come out and give you a little more color on that one.

Okay. And then secondly, on the cash flow, I know you talked about some of the drivers for that. How are you thinking about it in the second half? Should we expect some of these headwinds to continue? Is the working capital get better? Just -- I don't know if you can provide some rough numbers around how we should be modeling the burn.