Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but lower than a year ago. Free cash flow was negative and improved year over year but weakened sequentially.
- The cash conversion ratio, measured by operating cash flow relative to revenue, improved compared to the same quarter last year but weakened sequentially.
- Compared to the preceding quarter, free cash flow was lower; compared to the same quarter one year earlier, free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$103.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$33.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$31.8M
Cash generated by operations before capital spending.
CapEx
$1.2M
Capital spending and related asset purchases.
FCF margin
-43.7%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $102.1M | -$46.2M | $1.8M | -$48.0M | -47.0% |
| 2023-09-30 | $75.3M | $9.1M | $1.4M | $7.6M | 10.1% |
| 2023-12-31 | $73.7M | -$28.5M | $2.0M | -$30.5M | -41.5% |
| 2024-03-30 | $75.6M | -$31.8M | $1.2M | -$33.0M | -43.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 60.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$980.6M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved free cash flow margin year over year
The free cash flow margin improved compared to the same quarter last year, supported by lower capital expenditure and an improvement in operating cash flow.
This improvement in margin indicates better cash efficiency relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The cash conversion ratio, measured by operating cash flow relative to revenue, improved compared to the same quarter last year but weakened sequentially.
Compared to the preceding quarter, free cash flow was lower; compared to the same quarter one year earlier, free cash flow was higher.
Monitor the trend in operating cash flow as it remains negative and sequentially worsened.