Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased versus both the prior quarter and the year-ago period, but operating cash flow turned negative, resulting in a negative free cash flow. Compared to the same quarter last year, free cash flow improved, though it was weaker than the immediately preceding quarter.
- Despite higher revenue, operating cash flow was negative, and capital expenditure remained stable, generating a negative free cash flow and a negative margin.
- Sequentially, revenue improved while free cash flow weakened from positive to negative. Year over year, both revenue and free cash flow improved, with the negative margin narrowing.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$436.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$362.0M
Cash generated by operations before capital spending.
CapEx
$74.0M
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $3.4B | $1.5B | $83.0M | $1.4B | 40.4% |
| 2024-06-30 | $3.1B | $899.0M | $112.0M | $787.0M | 25.5% |
| 2024-09-30 | $3.6B | $158.0M | $64.0M | $94.0M | 2.6% |
| 2024-12-31 | $5.1B | -$362.0M | $74.0M | -$436.0M | -8.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -112.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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.
Revenue growth vs. cash flow conversion
Revenue rose in the current quarter, but operating cash flow shifted from positive to negative, driving free cash flow lower. The sequential decline in cash conversion despite higher revenue is the most notable change.
If operating cash flow does not improve in subsequent periods, free cash flow may remain pressured even with higher revenue.
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 remained stable, generating a negative free cash flow and a negative margin.
Sequentially, revenue improved while free cash flow weakened from positive to negative. Year over year, both revenue and free cash flow improved, with the negative margin narrowing.
The ability of operating cash flow to turn positive in the next quarter should be monitored.