The Houston-based space startup is one of many companies primed by NASA to return the United States to the moon, with greater private sector involvement seen as a lower cost but higher risk means of spaceflight. Its first lander fell on its side a year ago.
"We don't believe we're in the correct attitude on the surface of the moon, yet again," company chief executive Steve Altemus said at a news conference on Thursday.
Power generation issues due to the position of the Athena lander would mean the mission would be "off-nominal", Altemus said, adding there were "challenges" with the laser range finders on the craft.
The lander was returning data to earth which led the company to conclude the craft was on its side, Altemus said.
Shares of the company fell about 25 per cent in extended trading after closing roughly 20 per cent lower on Thursday.
The six-legged Athena, carrying 11 payloads and scientific instruments, targeted its landing site some 160 km from the lunar south pole for a touchdown.
But by the scheduled time for the touchdown, the lander's engine was still running, telemetry showed, as it appeared to hover over the moon.
Minutes later, after commanding the lander's engine to shut down, the company confirmed that Athena "is on the surface of the moon", though its exact orientation was unclear.
After launching atop a SpaceX rocket on February 26 from Florida, Athena flew a winding path to the moon some 383,000 km from earth.
The first moon landing attempt by Intuitive Machines almost exactly a year ago, using its Odysseus lander, marked the most successful touchdown attempt at the time by a private company.
But its hard touchdown - due to a faulty laser altimeter used to judge its distance from the ground - broke a lander leg and caused the craft to topple over, dooming many of its onboard experiments.
Five nations have made successful soft landings in the past - the then-Soviet Union, the United States, China, India and, last year, Japan.
The United States and China are both aiming to put their astronauts on the moon this decade, each courting allies and giving their private sectors a key role in spacecraft development.
India's first uncrewed moon landing, Chandrayaan-3 in 2023, touched down near the lunar south pole.
The region is eyed by major space powers for its potential for resource extraction once astronauts return to the surface - subsurface water ice could in theory be converted into rocket fuel.
Austin-based Firefly Aerospace this month celebrated a clean touchdown of its Blue Ghost lander, marking the most successful soft landing by a private company to date.
Intuitive Machines, Firefly, Astrobotic Technology and a handful of other companies are building lunar spacecraft under NASA's Commercial Lunar Payload Services program, an effort to seed development of low-budget spacecraft that can scour the moon's surface before the US sends astronauts there around 2027.
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