Spire Global's Solid Earnings Mask Concerns Over Negative Free Cash Flow and High Accrual Ratio

Spire Global's recent earnings report showed positive results, but investors should be cautious due to concerns about the company's cash burn and negative free cash flow. The accrual ratio, which measures the difference between reported profits and free cash flow, was 2.91, indicating a significant negative for future earnings. The company's cash burn of $93m and negative free cash flow last year raise concerns about high risk. However, improved cash flow relative to profit in the current year may alleviate these concerns.