Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue fell sharply year over year while operating cash outflows widened, leading to a further negative swing in free cash flow and a deeply negative margin. The sequential comparison shows a marked increase in cash consumption, driven largely by higher capital spending.
- Operating cash flow was deeply negative relative to revenue, and capital expenditure added to the cash drain, resulting in free cash flow that was substantially more negative than operating cash flow alone. The free cash flow margin remained deeply unfavorable, reflecting that cash conversion was far from breakeven.
- Compared to the prior quarter, operating cash outflow and capital expenditure both increased, causing free cash flow to weaken further. Versus the same quarter one year earlier, revenue was lower, operating cash outflow was higher, capital expenditure increased, and free cash flow deteriorated.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$302.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$87.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$48.1M
Cash generated by operations before capital spending.
CapEx
$39.6M
Capital spending and related asset purchases.
FCF margin
-17538.0%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | n/a | -$50.3M | $7.6M | -$57.8M | n/a |
| 2023-09-30 | n/a | -$36.1M | $73.5M | -$109.5M | n/a |
| 2023-12-31 | n/a | -$24.9M | $22.3M | -$47.2M | n/a |
| 2024-03-31 | $500000 | -$48.1M | $39.6M | -$87.7M | -17538.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 444.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7913.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $48.9M | 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 rose versus both the prior quarter and the year-ago quarter, contributing to a larger free cash outflow. The filing notes that satellite and ground infrastructure build-out is capital intensive, with over 95% of estimated spending on five Block 1 BB satellites already paid.
The higher capital outlay directly drove the deeper negative free cash flow, reinforcing the cash consumption trend.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was deeply negative relative to revenue, and capital expenditure added to the cash drain, resulting in free cash flow that was substantially more negative than operating cash flow alone. The free cash flow margin remained deeply unfavorable, reflecting that cash conversion was far from breakeven.
Compared to the prior quarter, operating cash outflow and capital expenditure both increased, causing free cash flow to weaken further. Versus the same quarter one year earlier, revenue was lower, operating cash outflow was higher, capital expenditure increased, and free cash flow deteriorated.
Monitor the trajectory of capital expenditure, as it was the primary factor widening the free cash flow deficit both sequentially and year over year.