Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased slightly from the prior quarter but was lower than the same quarter last year. Free cash flow was deeply negative, driven by a large capital expenditure and negative operating cash flow.
- Operating cash flow was negative, meaning the company consumed cash from operations rather than generating it. Combined with a substantial capital expenditure, free cash flow was deeply negative and the free cash flow margin was significantly negative.
- Compared to the prior quarter, operating cash flow improved (less negative) but capital expenditure increased sharply, resulting in a more negative free cash flow and a weakened free cash flow margin. Versus the same quarter last year, operating cash flow turned from positive to negative, capital expenditure rose substantially, and free cash flow and margin both worsened significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$445.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$223.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$52.3M
Cash generated by operations before capital spending.
CapEx
$171.0M
Capital spending and related asset purchases.
FCF margin
-617.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-11-30 | $36.2M | -$52.3M | $171.0M | -$223.3M | -617.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 161.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 473.0% | 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 Surge
Capital expenditure was substantially higher than both the prior quarter and the same quarter last year, making it the strongest observable driver of the free cash flow decline.
The large capital expenditure was the primary factor pushing free cash flow deeper into negative territory.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, meaning the company consumed cash from operations rather than generating it. Combined with a substantial capital expenditure, free cash flow was deeply negative and the free cash flow margin was significantly negative.
Compared to the prior quarter, operating cash flow improved (less negative) but capital expenditure increased sharply, resulting in a more negative free cash flow and a weakened free cash flow margin. Versus the same quarter last year, operating cash flow turned from positive to negative, capital expenditure rose substantially, and free cash flow and margin both worsened significantly.
Monitor the trajectory of capital expenditure, as it increased sharply from both the prior quarter and the year-ago quarter.