Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was deeply negative in the quarter, driven by a large capital expenditure and a negative operating cash flow. Revenue was minimal, resulting in a very negative free cash flow margin.
- Revenue was low, operating cash flow was negative, and capital expenditure was substantial, leading to a large negative free cash flow. The free cash flow margin was deeply negative, reflecting the company's heavy investment phase.
- Compared to the prior quarter, free cash flow weakened as operating cash flow turned more negative and capital expenditure increased. Compared to the same quarter one year earlier, free cash flow improved, primarily due to a lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$237.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$63.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$33.4M
Cash generated by operations before capital spending.
CapEx
$30.3M
Capital spending and related asset purchases.
FCF margin
-5795.8%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | 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% |
| 2024-09-30 | $1.1M | -$33.4M | $30.3M | -$63.8M | -5795.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 37.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2756.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $315.5M | 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
Capital expenditure was the largest cash outflow in the quarter, exceeding operating cash outflow. This is consistent with the company's capital-intensive satellite construction phase.
High capital expenditure is the primary driver of the deeply negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was low, operating cash flow was negative, and capital expenditure was substantial, leading to a large negative free cash flow. The free cash flow margin was deeply negative, reflecting the company's heavy investment phase.
Compared to the prior quarter, free cash flow weakened as operating cash flow turned more negative and capital expenditure increased. Compared to the same quarter one year earlier, free cash flow improved, primarily due to a lower capital expenditure.
Monitor the trend in capital expenditure, as it remains a significant cash outflow.