Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose versus both the prior quarter and the same period last year, while free cash flow remained negative. The company states that its cash, marketable securities, and operating cash flows are expected to meet working capital and capital expenditure needs for the next twelve months.
- Operating cash flow turned positive from a year earlier, and capital expenditure was slightly lower, resulting in a much less negative free cash flow and a narrower free cash flow margin. Sequentially, however, operating cash flow declined while capital spending also decreased, leading to a more negative free cash flow despite an improved margin.
- Compared with the immediately preceding quarter, free cash flow was more negative due to lower operating cash flow, even though capital expenditure decreased and the free cash flow margin improved. Compared with the same quarter one year earlier, free cash flow strengthened significantly, driven by a substantial improvement in operating cash flow and a modest reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$224.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$172.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$193.0M
Cash generated by operations before capital spending.
CapEx
$365.2M
Capital spending and related asset purchases.
FCF margin
-17.0%
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 | $801.1M | $165.4M | $286.2M | -$120.8M | -15.1% |
| 2023-12-31 | $1.2B | $561.1M | $346.9M | $214.2M | 18.5% |
| 2024-03-31 | $794.1M | $267.7M | $413.5M | -$145.7M | -18.4% |
| 2024-06-30 | $1.0B | $193.0M | $365.2M | -$172.1M | -17.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -49.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 36.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.1B | 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
Operating cash flow improved from a year ago, shifting from negative to positive, which was the strongest observable driver of the free cash flow improvement.
This driver substantially reduced the free cash flow deficit and improved the free cash flow margin relative to last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned positive from a year earlier, and capital expenditure was slightly lower, resulting in a much less negative free cash flow and a narrower free cash flow margin. Sequentially, however, operating cash flow declined while capital spending also decreased, leading to a more negative free cash flow despite an improved margin.
Compared with the immediately preceding quarter, free cash flow was more negative due to lower operating cash flow, even though capital expenditure decreased and the free cash flow margin improved. Compared with the same quarter one year earlier, free cash flow strengthened significantly, driven by a substantial improvement in operating cash flow and a modest reduction in capital expenditure.
Monitor whether operating cash flow can sustain its positive level given the sequential decline from the prior quarter.