Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, yet operating cash flow turned negative, resulting in a negative free cash flow margin. The cash conversion weakened sharply from the prior quarter and remained negative versus the year-ago period.
- Despite higher revenue, operating cash flow was negative, and capital expenditure was slightly higher than the prior quarter, leading to a negative free cash flow and a weakened free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow both turned from positive to negative, and the free cash flow margin declined. Versus the same quarter one year earlier, revenue was higher, operating cash flow was more negative, free cash flow was more negative, and the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$856.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$113.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$90.5M
Cash generated by operations before capital spending.
CapEx
$22.8M
Capital spending and related asset purchases.
FCF margin
-8.6%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $1.6B | $940.3M | $16.6M | $923.7M | 59.2% |
| 2024-03-31 | $959.8M | -$28.7M | $15.3M | -$44.0M | -4.6% |
| 2024-06-30 | $825.3M | $112.7M | $22.5M | $90.1M | 10.9% |
| 2024-09-30 | $1.3B | -$90.5M | $22.8M | -$113.4M | -8.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -46.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | 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.
Negative operating cash flow
Operating cash flow turned negative this quarter despite higher revenue, which was the primary factor behind the negative free cash flow and the decline in free cash flow margin.
The negative operating cash flow directly drove free cash flow lower and the free cash flow margin into negative territory.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative, and capital expenditure was slightly higher than the prior quarter, leading to a negative free cash flow and a weakened free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow both turned from positive to negative, and the free cash flow margin declined. Versus the same quarter one year earlier, revenue was higher, operating cash flow was more negative, free cash flow was more negative, and the free cash flow margin was lower.
Monitor whether operating cash flow can return to positive levels in the next quarter given the current negative cash conversion.