Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company reported negative free cash flow and a negative margin in the current quarter. The filing states that the company expects its operating cash flow, along with existing cash and borrowings, to be sufficient to meet its cash needs.
- Operating cash flow was negative, and after capital expenditure, free cash flow was also negative. The filing notes that the company expects its operating cash flow, together with existing cash and borrowings, to cover cash requirements.
- Compared to the immediately preceding quarter, revenue was lower and operating cash flow turned from positive to negative, resulting in a much weaker free cash flow. Relative to the same quarter one year earlier, revenue was similar, but operating cash flow was more negative and capital expenditure was higher, leading to a more negative free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$932.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$133.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$125.5M
Cash generated by operations before capital spending.
CapEx
$7.9M
Capital spending and related asset purchases.
FCF margin
-9.4%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $1.4B | $189.8M | $12.1M | $177.7M | 12.6% |
| 2024-03-31 | $1.7B | $207.4M | $22.8M | $184.6M | 10.7% |
| 2024-06-30 | $1.9B | $721.0M | $17.8M | $703.2M | 36.2% |
| 2024-09-30 | $1.4B | -$125.5M | $7.9M | -$133.4M | -9.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -167.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue stability with weaker cash generation
Revenue remained at a similar level compared to the year-ago quarter, but operating cash flow decreased, driving a larger negative free cash flow.
The company's ability to generate cash from its revenue deteriorated relative to the prior year, warranting attention to the factors behind the cash flow decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and after capital expenditure, free cash flow was also negative. The filing notes that the company expects its operating cash flow, together with existing cash and borrowings, to cover cash requirements.
Compared to the immediately preceding quarter, revenue was lower and operating cash flow turned from positive to negative, resulting in a much weaker free cash flow. Relative to the same quarter one year earlier, revenue was similar, but operating cash flow was more negative and capital expenditure was higher, leading to a more negative free cash flow margin.
Monitor the evolution of operating cash flow, as the current quarter's negative cash conversion was more pronounced than in the prior year.