Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to a year earlier, while operating cash flow improved from the prior year but weakened from the preceding quarter. Free cash flow remained deeply negative, with a margin that was slightly improved year-over-year but lower sequentially.
- Revenue was present, but operating cash flow was negative and capital expenditure was elevated, resulting in a large negative free cash flow and a deeply negative free cash flow margin. The cash conversion cycle was unfavorable as cash outflows for operations and investment exceeded incoming revenue.
- Compared to the preceding quarter, revenue increased from zero, operating cash flow weakened, capital expenditure was higher, and free cash flow was more negative. Compared to the same quarter one year earlier, revenue was stable, operating cash flow improved, capital expenditure was higher, and free cash flow was slightly more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$214.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$53.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$37.7M
Cash generated by operations before capital spending.
CapEx
$15.4M
Capital spending and related asset purchases.
FCF margin
-2218.9%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2022-06-30 | $7.3M | -$41.0M | $28.9M | -$69.9M | -962.8% |
| 2022-09-30 | $4.2M | -$32.9M | $12.3M | -$45.2M | -1083.7% |
| 2022-12-31 | $0 | -$35.0M | $11.4M | -$46.5M | n/a |
| 2023-03-31 | $2.4M | -$37.7M | $15.4M | -$53.1M | -2218.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 325.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 642.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $180.3M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher both sequentially and year-over-year, reflecting ongoing investment in satellite construction and ground infrastructure. This was the strongest observable driver of the free cash flow change.
Higher capital expenditure directly contributed to a more negative free cash flow despite improved operating cash flow versus the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was present, but operating cash flow was negative and capital expenditure was elevated, resulting in a large negative free cash flow and a deeply negative free cash flow margin. The cash conversion cycle was unfavorable as cash outflows for operations and investment exceeded incoming revenue.
Compared to the preceding quarter, revenue increased from zero, operating cash flow weakened, capital expenditure was higher, and free cash flow was more negative. Compared to the same quarter one year earlier, revenue was stable, operating cash flow improved, capital expenditure was higher, and free cash flow was slightly more negative.
Monitor the trajectory of capital expenditure relative to available cash and equity program access, as the company expects no near-term revenue generation.