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 quarter, driven by an operating cash outflow. Revenue was lower than the prior quarter but higher than the same quarter last year.
- Revenue generated an operating cash outflow during the quarter, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure remained present but was not the primary driver of the cash conversion weakness.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all weakened, moving from positive to negative. Relative to the same quarter one year earlier, revenue improved while free cash flow and free cash flow margin deteriorated sharply.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$943.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$44.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$28.7M
Cash generated by operations before capital spending.
CapEx
$15.3M
Capital spending and related asset purchases.
FCF margin
-4.6%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $675.8M | $125.3M | $30.7M | $94.5M | 14.0% |
| 2023-09-30 | $1.1B | -$3.7M | $26.7M | -$30.4M | -2.8% |
| 2023-12-31 | $1.6B | $940.3M | $16.6M | $923.7M | 59.2% |
| 2024-03-31 | $959.8M | -$28.7M | $15.3M | -$44.0M | -4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -34.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 swing
The shift from a large positive operating cash flow in the prior quarter to a negative amount in the current quarter is the strongest observable driver of the free cash flow decline. Revenue was lower sequentially, but the cash flow deterioration was proportionally more severe.
This operating cash flow deficit directly caused free cash flow to turn negative for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue generated an operating cash outflow during the quarter, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure remained present but was not the primary driver of the cash conversion weakness.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all weakened, moving from positive to negative. Relative to the same quarter one year earlier, revenue improved while free cash flow and free cash flow margin deteriorated sharply.
Monitor whether operating cash flow can return to positive territory in subsequent periods, given the significant swing from the prior quarter.