Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative in the current quarter, driven by a significant swing in operating cash flow from positive to negative. Revenue was higher than the prior quarter but lower than the same quarter a year earlier.
- Revenue was higher than the prior quarter, yet operating cash flow turned negative, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter.
- Compared with the prior quarter, operating cash flow and free cash flow both weakened from positive to negative, and the margin moved from positive to negative. Versus the year-ago quarter, all metrics were substantially lower, with operating cash flow and free cash flow declining sharply from large positive figures.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$416.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$41.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$33.3M
Cash generated by operations before capital spending.
CapEx
$8.6M
Capital spending and related asset purchases.
FCF margin
-1.0%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $4.4B | $224.8M | $10.3M | $214.5M | 4.9% |
| 2023-09-30 | $4.3B | $205.2M | $4.2M | $201.0M | 4.6% |
| 2023-12-31 | $4.2B | $47.3M | $4.1M | $43.2M | 1.0% |
| 2024-03-31 | $4.4B | -$33.3M | $8.6M | -$41.9M | -1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -45.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | 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 most observable driver was the shift in operating cash flow from positive in the prior quarter to negative in the current quarter, while capital expenditure was slightly higher. This resulted in negative free cash flow, contrasting with the positive margins of the comparison periods.
The negative free cash flow indicates the company consumed cash from operations and capital investments during the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, yet operating cash flow turned negative, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter.
Compared with the prior quarter, operating cash flow and free cash flow both weakened from positive to negative, and the margin moved from positive to negative. Versus the year-ago quarter, all metrics were substantially lower, with operating cash flow and free cash flow declining sharply from large positive figures.
Monitor changes in receivables and contract assets, which increased from the prior quarter-end according to the balance sheet in the filing.