Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially while operating cash flow improved, but a sharp rise in capital expenditure caused free cash flow to weaken. The free cash flow margin improved from the prior quarter but stayed negative.
- Revenue was higher than the preceding quarter, and operating cash flow was less negative, indicating improved cash conversion from operations. However, capital expenditure was substantially higher, resulting in free cash flow that was more negative and a free cash flow margin that remained unfavorable.
- Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved, but capital expenditure was higher and free cash flow weakened. Versus the same quarter one year earlier, operating cash flow weakened, capital expenditure was higher, and free cash flow weakened; revenue was not provided for the prior year period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$300.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$110.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$28.4M
Cash generated by operations before capital spending.
CapEx
$82.0M
Capital spending and related asset purchases.
FCF margin
-975.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $11.3M | -$28.4M | $82.0M | -$110.5M | -975.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 308.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 724.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $406.5M | 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 ramp-up
Capital expenditure was higher than the previous quarter, reflecting increased investment in satellite infrastructure. This drove free cash flow lower despite higher revenue and improved operating cash flow.
Free cash flow weakened sequentially due to the elevated capital spending, keeping the cash conversion profile negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the preceding quarter, and operating cash flow was less negative, indicating improved cash conversion from operations. However, capital expenditure was substantially higher, resulting in free cash flow that was more negative and a free cash flow margin that remained unfavorable.
Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved, but capital expenditure was higher and free cash flow weakened. Versus the same quarter one year earlier, operating cash flow weakened, capital expenditure was higher, and free cash flow weakened; revenue was not provided for the prior year period.
Monitor the trend in capital expenditure as the company continues its satellite construction and launch activities, given its capital-intensive nature and the impact on free cash flow.