Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter after being negative in the preceding quarter, but it was lower than in the same quarter one year earlier. Revenue was slightly higher compared to both the prior quarter and the year-ago quarter, and the company's filing notes its historical cash generation from operations and access to debt facilities.
- Revenue in the quarter converted to operating cash flow, which after capital expenditure resulted in free cash flow, yielding a free cash flow margin that improved from the prior quarter's negative margin but was lower than the year-ago margin.
- Compared to the prior quarter, operating cash flow improved from negative to positive, and free cash flow swung from negative to positive as well. Year over year, revenue was slightly higher, but operating cash flow and free cash flow were lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$362.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$159.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$166.4M
Cash generated by operations before capital spending.
CapEx
$6.6M
Capital spending and related asset purchases.
FCF margin
3.6%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $4.5B | $166.4M | $6.6M | $159.8M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 Turnaround
The key driver was the significant improvement in operating cash flow, which reversed from negative to positive and was the main factor behind the free cash flow swing.
This turnaround directly caused free cash flow to become positive, though year-over-year comparisons still show lower cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue in the quarter converted to operating cash flow, which after capital expenditure resulted in free cash flow, yielding a free cash flow margin that improved from the prior quarter's negative margin but was lower than the year-ago margin.
Compared to the prior quarter, operating cash flow improved from negative to positive, and free cash flow swung from negative to positive as well. Year over year, revenue was slightly higher, but operating cash flow and free cash flow were lower, and the margin weakened.
Monitor whether operating cash flow can sustain its positive trajectory in upcoming quarters.