RK
RKLB
Sep 30, 2024
Quarter ended Sep 30, 2024 · FY2024 Q3

Rocket Lab USA, Inc. stock research

Rocket Lab USA (RKLB) Free Cash Flow — Quarter Ended Sep 30, 2024

Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow was more negative than the prior quarter but less negative than a year ago.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow was more negative than the prior quarter but less negative than a year ago.

  • Operating cash flow was negative and capital expenditure remained elevated, resulting in negative free cash flow and a free cash flow margin that was weaker than the prior quarter but improved from a year ago.
  • Compared to the prior quarter, revenue was slightly lower while operating cash flow and free cash flow both weakened. Compared to the same quarter last year, revenue was higher and free cash flow improved, though operating cash flow was more negative.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

-$144.7M

Trailing twelve-month free cash flow.

Quarter free cash flow

-$41.9M

Free cash flow in the selected fiscal quarter.

Operating cash flow

-$30.9M

Cash generated by operations before capital spending.

CapEx

$11.0M

Capital spending and related asset purchases.

FCF margin

-40.0%

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.

PeriodRevenueOperating CFCapExFCFFCF margin
2023-12-31$60.0M-$42.2M$10.4M-$52.6M-87.7%
2024-03-31$92.8M-$2.6M$19.2M-$21.8M-23.5%
2024-06-30$106.3M-$13.0M$15.3M-$28.3M-26.7%
2024-09-30$104.8M-$30.9M$11.0M-$41.9M-40.0%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income80.7%Shows whether accounting earnings convert into cash.
CapEx / revenue10.5%Lower capital intensity usually supports FCF margin.
Net cash$231.3MCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Watch

Capital expenditure level

Capital expenditure was lower than both the prior quarter and the same quarter last year, yet free cash flow remained deeply negative due to the operating cash flow shortfall.

The combination of negative operating cash flow and ongoing capital spending continues to pressure free cash flow.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Operating cash flow was negative and capital expenditure remained elevated, resulting in negative free cash flow and a free cash flow margin that was weaker than the prior quarter but improved from a year ago.

Compared to the prior quarter, revenue was slightly lower while operating cash flow and free cash flow both weakened. Compared to the same quarter last year, revenue was higher and free cash flow improved, though operating cash flow was more negative.

Monitor the trajectory of operating cash flow, which weakened sequentially despite stable revenue.