Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Southwest Airlines Co. is a major U.S. passenger airline that focuses on providing scheduled air transportation services for leisure and business travelers. The company operates an extensive point-to-point network, primarily within the United States, and also serves select destinations in the Caribbean, Mexico, and Central America. Southwest Airlines is known for its single-class cabin configuration, open seating policy, and inclusion of benefits such as no-charge checked bags on many fares, which differentiates its service model in the commercial aviation market. The airline generates revenue through passenger fares and a range of ancillary services, including early check-in options, upgraded boarding, and travel-related fees. Headquartered in Dallas, Texas, Southwest Airlines plays a significant role in the North American air travel industry by emphasizing high-frequency routes, competitive pricing, and operations at both major and secondary airports. Its business is positioned within the broader industrials and transportation sector, serving individuals, small businesses, and corporate travel customers across its network.
The business is unprofitable at the operating level (-1073.54% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 88.6%, still solid. Margins contracted 492.6pp, which offsets some of the top-line progress.
ROIC dropped from -328.27% to -1737.66%, capital efficiency is deteriorating. Negative free cash flow of -$4M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (FY)
$438K
▲ +88.6% YoY
Net Income (FY)
-$5M
▼ -202.8% YoY
Op. Margin
-1073.54%
▼ -492.6pp YoY
ROIC
-1737.66%
▼ -1409.4pp YoY
Cash Flow & Balance Sheet
FCF (FY)
-$4M
▼ -421.6% YoY
Op. Cash Flow (FY)
-$4M
▼ -413.8% YoY
Net Debt
-$7M
Net Cash Position
Cash & Equiv.
$7M
3Y CAGR: +0.9%
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