Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter generated negative free cash flow with a negative margin, driven by negative operating cash flow. Revenue was lower than the same quarter one year earlier but higher than the prior quarter.
- Operating cash flow was negative, and capital expenditure was positive, resulting in negative free cash flow and a negative free cash flow margin.
- Compared to the prior quarter, operating cash flow and free cash flow turned from positive to negative, and the margin weakened. Compared to the same quarter one year earlier, free cash flow was more negative and the margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$39.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$147.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$143.5M
Cash generated by operations before capital spending.
CapEx
$4.0M
Capital spending and related asset purchases.
FCF margin
-58.8%
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 |
|---|---|---|---|---|---|
| 2023-10-28 | $569.7M | $72.0M | $4.0M | $68.0M | 11.9% |
| 2024-01-27 | $415.4M | -$35.8M | $3.3M | -$39.0M | -9.4% |
| 2024-04-27 | $235.9M | $81.7M | $2.6M | $79.1M | 33.5% |
| 2024-07-27 | $250.9M | -$143.5M | $4.0M | -$147.5M | -58.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 141.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$213.7M | 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
Operating cash flow shifted from positive in the prior quarter to negative in the current quarter, and was more negative than the same quarter last year. This is the strongest observable driver of the free cash flow decline.
The negative operating cash flow directly caused the free cash flow to be negative despite relatively stable capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and capital expenditure was positive, resulting in negative free cash flow and a negative free cash flow margin.
Compared to the prior quarter, operating cash flow and free cash flow turned from positive to negative, and the margin weakened. Compared to the same quarter one year earlier, free cash flow was more negative and the margin was lower.
The magnitude of the negative operating cash flow is a key item to monitor as it directly drives free cash flow.