Persistent free cash flow deficits, including a low of -29.3% in 2025Q3, highlight a structural cash burn that complicates the company's ability to fund its $5.9 billion in net property, plant, and equipment.
| Cash from Operations | -399M | -525M | -82M | -261M | -78M | 216M | -557M | 171M | 189M | 238M | 208M |
| Operating CF Margin % | - | -14.1% | -2.17% | -7.27% | -2.35% | 10.49% | -44.56% | 6.82% | 8.77% | 13.89% | 12.97% |
| Operating CF Growth % | -1673.68% | -540.24% | 68.58% | -234.62% | -136.11% | 138.78% | -425.73% | -9.52% | -20.59% | 14.42% | - |
| Net Income | -366M | -137M | 85M | -11M | -37M | -102M | -225M | 251M | 80M | 200M | 146M |
| Depreciation & Amortization | 107M | 0 | 72M | 50M | 45M | 38M | 33M | 46M | 78M | 75M | 54M |
| Stock-Based Compensation | 11M | 0 | 16M | 14M | 15M | 11M | 8M | 8M | 26M | 42M | 44M |
| Deferred Taxes | -8M | 0 | 0 | 43M | -8M | -32M | -14M | 52M | -72M | -23M | 14M |
| Other Non-Cash Items | -462M | -186M | -292M | -146M | -79M | -37M | -26M | -108M | 7M | -13M | 59M |
| Working Capital Changes | 47M | -202M | 37M | -211M | -14M | 338M | -333M | -78M | 70M | -43M | -109M |
| Change in Receivables | -29M | -12M | 22M | 33M | -28M | -14M | 61M | -6M | 28M | 28M | 15M |
| Change in Inventory | -34M | 0 | 20M | 0 | -40M | 174M | -166M | -18M | 29M | 20M | -5M |
| Change in Payables | 0 | -1M | -15M | 47M | -4M | 13M | -213M | 24M | -7M | 20M | 6M |
| Cash from Investing | -37M | -99M | -75M | -90M | -154M | -67M | 11M | -62M | -59M | -39M | -143M |
| Capital Expenditures | -49M | -99M | -73M | -87M | -152M | -63M | -16M | -17M | -35M | -30M | -107M |
| CapEx % of Revenue | 1.29% | 2.66% | 1.93% | 2.42% | 4.57% | 3.06% | 1.28% | 0.68% | 1.62% | 1.75% | 6.67% |
| Acquisitions | 45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -33M | 0 | -2M | -3M | -2M | -4M | 27M | -45M | -24M | -9M | -36M |
| Cash from Financing | 522M | 555M | 288M | 199M | 75M | 391M | 156M | -39M | -149M | -6M | 91M |
| Debt Issued (Net) | 271M | 112M | 293M | 203M | 7M | 125M | 157M | 31M | -90M | 100M | 91M |
| Equity Issued (Net) | 0 | 6M | 0 | -5M | -4M | -3M | -1M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -159M | -211M | -101M | 0 |
| Share Repurchases | 0 | 0 | 0 | -5M | 0 | 0 | -1M | 0 | 0 | 0 | 0 |
| Other Financing | 251M | 437M | -5M | 1M | 72M | 269M | -1M | 89M | 152M | -5M | 0 |
| Net Change in Cash | 86M | -69M | 131M | -152M | -157M | 540M | -390M | 70M | -19M | 193M | 156M |
| Free Cash Flow | -481M | -624M | -158M | -348M | -230M | 153M | -573M | 109M | 130M | 208M | 62M |
| FCF Margin % | -12.64% | -16.76% | -4.19% | -9.7% | -6.92% | 7.43% | -45.84% | 4.35% | 6.03% | 12.14% | 3.87% |
| FCF Growth % | -105.56% | -294.94% | 54.6% | -51.3% | -250.33% | 126.7% | -625.69% | -16.15% | -37.5% | 235.48% | - |
| FCF per Share | -2.09 | -2.71 | -0.70 | -1.58 | -1.06 | 0.70 | -2.66 | 0.51 | 0.60 | 0.97 | 0.29 |
| FCF Conversion (FCF/Net Income) | 1.31x | 3.83x | -0.96x | 23.73x | 2.11x | -2.12x | 2.48x | 0.68x | 2.36x | 1.19x | 1.42x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Structural Cash Flow Deficit
As reported in recent financial filings, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -6.00 in 2024Q3 to 2.79 in 2025Q3, indicating that accounting earnings provide little visibility into the company's actual cash-generating capacity.
The extreme volatility in the OCF/NI ratio suggests that Frontier's cash flow is heavily influenced by non-operating items and significant working capital swings rather than core operational profitability. Investors should monitor this divergence, as it implies that reported net income may be masking the underlying cash burn inherent in the current ultra-low-cost carrier business model.
Based on the provided quarterly data, Frontier has struggled to maintain positive free cash flow, with FCF margins reaching a low of -29.3% in 2025Q3, reflecting a structural inability to cover capital requirements through internal operations during periods of intense competitive capacity pressure.
The consistent negative FCF trajectory suggests that the company is currently reliant on external financing or cash reserves to fund its operations and fleet commitments. This trend warrants further investigation into whether the current capital expenditure levels are sustainable given the company's inability to generate consistent positive cash flow from its core flying business.
According to the cash flow statements, working capital changes have been a primary driver of liquidity fluctuations, ranging from a $234 million inflow in 2026Q1 to a $135 million outflow in 2024Q3, which complicates the assessment of the company's underlying operational efficiency.
These large, erratic swings in working capital suggest that the company's cash position is highly sensitive to the timing of payments and receipts, potentially related to seasonal booking patterns or deferred maintenance obligations. Analysts should be cautious in interpreting short-term cash flow improvements, as they may be driven by temporary working capital management rather than sustainable operational gains.
As indicated by the company's reported figures, capital expenditure as a percentage of revenue has fluctuated significantly, peaking at 5.9% in 2025Q4, which highlights the ongoing financial burden of maintaining a modern, fuel-efficient fleet in a high-interest-rate environment.
The capital intensity of the business appears to be a major drag on cash flow, particularly as the company continues to take delivery of new aircraft. Investors should monitor whether these capital outlays are yielding the expected improvements in unit costs, or if they are merely adding to the company's fixed-cost burden during a period of weak pricing power.
Quick answers to the most common questions about buying ULCC stock.
Frontier Group Holdings, Inc. (ULCC) generated $-525.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Frontier Group Holdings, Inc. (ULCC) reported negative free cash flow of $624.0M in 2025, indicating capital requirements exceeded cash from operations.
Frontier Group Holdings, Inc. (ULCC) spent $99.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.