Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved compared to both the prior quarter and the same quarter last year. However, free cash flow turned negative from the prior quarter's positive level, though it was less negative than a year ago.
- Operating cash flow was negative in the current quarter, contrasting with a positive amount in the prior quarter and partly explaining the negative free cash flow. Capital expenditure was lower than the prior quarter but higher than a year ago. The free cash flow margin was negative, worse than the prior quarter's positive margin but improved from a deeper negative margin one year earlier.
- Compared to the immediately preceding quarter, revenue increased and operating cash flow shifted from positive to negative. Versus the same quarter one year earlier, revenue was higher and operating cash flow was less negative, leading to a smaller negative free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$162.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$32.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$15.9M
Cash generated by operations before capital spending.
CapEx
$16.2M
Capital spending and related asset purchases.
FCF margin
-7.0%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $373.3M | $42.7M | $13.1M | $29.5M | 7.9% |
| 2023-09-30 | $412.7M | $62.9M | $14.0M | $48.9M | 11.9% |
| 2023-12-31 | $430.4M | $140.0M | $24.0M | $116.0M | 27.0% |
| 2024-03-31 | $459.9M | -$15.9M | $16.2M | -$32.1M | -7.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -24.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | 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 weakness
Operating cash flow was negative for the quarter, a significant decline from a strong positive result in the prior quarter. This was the strongest observable driver behind the negative free cash flow.
The timing of cash collections or payments led to a cash outflow from operations, reversing the prior quarter's inflow and absorbing the revenue growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative in the current quarter, contrasting with a positive amount in the prior quarter and partly explaining the negative free cash flow. Capital expenditure was lower than the prior quarter but higher than a year ago. The free cash flow margin was negative, worse than the prior quarter's positive margin but improved from a deeper negative margin one year earlier.
Compared to the immediately preceding quarter, revenue increased and operating cash flow shifted from positive to negative. Versus the same quarter one year earlier, revenue was higher and operating cash flow was less negative, leading to a smaller negative free cash flow.
Monitor the level of operating cash flow, which turned negative this quarter despite higher revenue, as it is crucial for returning to positive free cash flow.