Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was deeply negative as operating cash flow turned negative and capital expenditure rose sharply. Revenue declined from the prior quarter but was higher than a year earlier.
- Revenue fell while operating cash flow swung from positive to negative, resulting in a large free cash outflow. Capital expenditure increased, further widening the negative free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all weakened significantly. Versus the same quarter last year, revenue improved but operating cash flow and free cash flow deteriorated.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$128.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$88.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$31.5M
Cash generated by operations before capital spending.
CapEx
$57.4M
Capital spending and related asset purchases.
FCF margin
-603.1%
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 |
|---|---|---|---|---|---|
| 2023-08-31 | $36.3M | $4.5M | $32.6M | -$28.1M | -77.3% |
| 2023-11-30 | $42.2M | $4.5M | $13.2M | -$8.7M | -20.6% |
| 2024-02-29 | $43.3M | $36.3M | $38.6M | -$2.3M | -5.4% |
| 2024-05-31 | $14.7M | -$31.5M | $57.4M | -$88.9M | -603.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 389.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Swing
Operating cash flow turned from positive in the prior quarter to negative in the current quarter, a significant shift that drove the free cash flow deficit.
The reversal in operating cash flow was the strongest observable driver of the quarter's free cash flow weakness.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue fell while operating cash flow swung from positive to negative, resulting in a large free cash outflow. Capital expenditure increased, further widening the negative free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all weakened significantly. Versus the same quarter last year, revenue improved but operating cash flow and free cash flow deteriorated.
Monitor the company's ability to generate positive operating cash flow given the negative working capital and reliance on external financing.