Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative in the current quarter, with a significant improvement compared to the prior quarter, while the year-ago quarter figure was not provided. The cash conversion profile was primarily driven by a narrower gap between operating cash outflows and capital spending.
- Revenue increased from the prior quarter, while operating cash outflow decreased. Capital expenditure was lower than the prior quarter but remained above the year-ago level. The resulting free cash flow was negative but improved compared to both the prior quarter and the year-ago quarter. The free cash flow margin remained negative and improved from the prior quarter.
- Compared to the immediately preceding quarter, free cash flow improved, driven by lower operating cash outflow and reduced capital expenditure. Versus the same quarter one year earlier, free cash flow also improved, as operating cash outflow decreased while capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$282.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$38.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$16.2M
Cash generated by operations before capital spending.
CapEx
$22.2M
Capital spending and related asset purchases.
FCF margin
-4261.6%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | 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% |
| 2024-06-30 | $900000 | -$16.2M | $22.2M | -$38.4M | -4261.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 52.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2466.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $85.3M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower operating cash outflow
The largest observable improvement came from a reduction in operating cash outflow compared to the prior quarter. This, combined with lower capital spending, led to a narrower free cash flow deficit.
The free cash flow deficit was materially smaller than the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, while operating cash outflow decreased. Capital expenditure was lower than the prior quarter but remained above the year-ago level. The resulting free cash flow was negative but improved compared to both the prior quarter and the year-ago quarter. The free cash flow margin remained negative and improved from the prior quarter.
Compared to the immediately preceding quarter, free cash flow improved, driven by lower operating cash outflow and reduced capital expenditure. Versus the same quarter one year earlier, free cash flow also improved, as operating cash outflow decreased while capital expenditure increased.
Monitor the level of capital expenditure relative to the company's disclosed estimate for satellite assembly and launch costs.