Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. However, operating cash flow and free cash flow turned negative, and free cash flow margin weakened from the prior quarter's positive level.
- Revenue was higher than in prior periods, but operating cash flow was negative, meaning the company did not convert its revenue into cash. After capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher, but operating cash flow and free cash flow both turned from positive to negative, and free cash flow margin declined sharply. Compared to the same quarter one year earlier, revenue was higher and free cash flow was slightly less negative, while the free cash flow margin improved moderately.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$139728
Trailing twelve-month free cash flow.
Quarter free cash flow
-$114000
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$96000
Cash generated by operations before capital spending.
CapEx
$18000
Capital spending and related asset purchases.
FCF margin
-9.5%
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 | $891613 | -$159014 | $22373 | -$181387 | -20.3% |
| 2024-05-31 | $1.2M | -$42713 | $18579 | -$61292 | -5.0% |
| 2024-08-31 | $682087 | $217017 | $66 | $216951 | 31.8% |
| 2024-11-30 | $1.2M | -$96000 | $18000 | -$114000 | -9.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 11.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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.
Revenue Growth
Revenue was higher than both the prior quarter and the year-ago quarter, representing the most notable change among the financial metrics.
While revenue increased, operating cash flow did not follow, indicating that the revenue growth did not translate into cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than in prior periods, but operating cash flow was negative, meaning the company did not convert its revenue into cash. After capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher, but operating cash flow and free cash flow both turned from positive to negative, and free cash flow margin declined sharply. Compared to the same quarter one year earlier, revenue was higher and free cash flow was slightly less negative, while the free cash flow margin improved moderately.
The trend of operating cash flow, which turned negative despite higher revenue, is a key area to monitor.