Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved compared to the previous quarter but declined from the same quarter last year. Free cash flow remained deeply negative, driven by substantial capital expenditure and negative operating cash flow.
- Operating cash flow was negative and worsened from both the prior quarter and the year-ago quarter. Combined with elevated capital expenditure, free cash flow margin, while improved from the prior quarter, remained significantly negative.
- Compared to the prior quarter, revenue increased and free cash flow margin improved, but absolute free cash flow was lower. Compared to the same quarter last year, revenue decreased, operating cash flow turned from positive to negative, and free cash flow further weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$230.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$130.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$75.9M
Cash generated by operations before capital spending.
CapEx
$54.8M
Capital spending and related asset purchases.
FCF margin
-375.0%
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.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 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% |
| 2024-08-31 | $34.8M | -$75.9M | $54.8M | -$130.7M | -375.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 3077.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 157.2% | 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.
Capital Expenditure and Operating Cash Flow
Capital expenditure remained high relative to revenue, and operating cash flow was negative, both contributing to substantial negative free cash flow. The cash conversion cycle is under pressure from these two factors.
The sustained negative free cash flow raises the need for external financing or asset sales to support ongoing operations and capital investments.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative and worsened from both the prior quarter and the year-ago quarter. Combined with elevated capital expenditure, free cash flow margin, while improved from the prior quarter, remained significantly negative.
Compared to the prior quarter, revenue increased and free cash flow margin improved, but absolute free cash flow was lower. Compared to the same quarter last year, revenue decreased, operating cash flow turned from positive to negative, and free cash flow further weakened.
Monitor the trajectory of capital expenditure and operating cash flow, as their combined effect drives the magnitude of negative free cash flow.