Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year, but operating cash flow turned negative, driving free cash flow deeply negative. The free cash flow margin weakened sharply from positive levels in both comparison periods.
- Despite stable revenue, operating cash flow was negative, which together with capital expenditure resulted in a negative free cash flow and a negative free cash flow margin. This indicates that cash conversion from revenue was unfavorable during the quarter.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all declined significantly, turning from positive to negative. Versus the same quarter one year earlier, the deterioration was even more pronounced, as operating cash flow and free cash flow were strongly positive in that prior period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$271.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$118.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$53.5M
Cash generated by operations before capital spending.
CapEx
$65.3M
Capital spending and related asset purchases.
FCF margin
-8.9%
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 | $1.3B | $33.6M | $47.9M | -$14.3M | -1.1% |
| 2023-09-30 | $1.2B | $411.5M | $55.3M | $356.2M | 29.4% |
| 2023-12-31 | $1.3B | $136.6M | $88.3M | $48.3M | 3.8% |
| 2024-03-31 | $1.3B | -$53.5M | $65.3M | -$118.8M | -8.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -33.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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 Turned Negative
Operating cash flow shifted from a positive level in the prior quarter and the year-ago quarter to a negative amount in the current quarter. This change was the dominant force behind the negative free cash flow and margin, even though capital expenditure was lower than the prior quarter.
The negative operating cash flow directly caused free cash flow to be negative, reversing the positive free cash flow seen in both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite stable revenue, operating cash flow was negative, which together with capital expenditure resulted in a negative free cash flow and a negative free cash flow margin. This indicates that cash conversion from revenue was unfavorable during the quarter.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all declined significantly, turning from positive to negative. Versus the same quarter one year earlier, the deterioration was even more pronounced, as operating cash flow and free cash flow were strongly positive in that prior period.
Monitor the trajectory of operating cash flow, as its swing from positive to negative was the primary factor behind the negative free cash flow this quarter.