Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher compared to both the prior quarter and the same quarter last year. Operating cash flow turned negative, resulting in negative free cash flow, though the shortfall was smaller than a year ago.
- Revenue was higher, but operating cash flow was negative, leading to negative free cash flow and a negative free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, operating cash flow and free cash flow weakened sharply from positive to negative, and the free cash flow margin turned negative. Compared to the same quarter last year, operating cash flow, free cash flow, and free cash flow margin all improved, as the cash outflows were smaller.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$848.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$217.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$145.2M
Cash generated by operations before capital spending.
CapEx
$71.8M
Capital spending and related asset purchases.
FCF margin
-9.6%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $2.2B | $136.6M | $41.7M | $94.9M | 4.4% |
| 2024-06-30 | $2.1B | $528.4M | $46.1M | $482.3M | 22.7% |
| 2024-09-30 | $2.2B | $558.2M | $69.8M | $488.4M | 22.1% |
| 2024-12-31 | $2.3B | -$145.2M | $71.8M | -$217.0M | -9.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -132.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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 turned negative
The shift from positive operating cash flow in the prior quarter to negative in the current quarter was the primary factor behind the negative free cash flow. This occurred despite higher revenue.
The negative operating cash flow drove free cash flow negative, reversing the positive position from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, but operating cash flow was negative, leading to negative free cash flow and a negative free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter.
Compared to the prior quarter, operating cash flow and free cash flow weakened sharply from positive to negative, and the free cash flow margin turned negative. Compared to the same quarter last year, operating cash flow, free cash flow, and free cash flow margin all improved, as the cash outflows were smaller.
Monitor the level of accounts payable and accrued expenses, which contributed to the improvement in operating cash flow compared to the prior year.