Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially but declined compared to the prior year. Operating cash flow turned negative, resulting in a negative free cash flow margin.
- Despite higher revenue, operating cash flow was negative, and capital expenditures remained at a similar level to the prior quarter, leading to negative free cash flow.
- Compared to the prior quarter, revenue improved while operating cash flow weakened from positive to negative. Versus the same quarter a year earlier, revenue was lower and both operating and free cash flow sharply declined from strongly positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$238.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$18.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$11.0M
Cash generated by operations before capital spending.
CapEx
$7.7M
Capital spending and related asset purchases.
FCF margin
-1.0%
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 |
|---|---|---|---|---|---|
| 2023-04-29 | $1.2B | -$102.7M | $9.1M | -$111.8M | -9.0% |
| 2023-07-29 | $1.2B | -$109.1M | $10.1M | -$119.2M | -10.2% |
| 2023-10-28 | $1.1B | $19.1M | $8.0M | $11.1M | 1.0% |
| 2024-02-03 | $1.8B | -$11.0M | $7.7M | -$18.7M | -1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -29.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | $893.2M | 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 positive in the prior quarter to negative in the current period, despite a sequential revenue gain. This was the primary factor behind the negative free cash flow.
The negative operating cash flow outweighed moderate capital expenditure, resulting in negative free cash flow and margin.
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 expenditures remained at a similar level to the prior quarter, leading to negative free cash flow.
Compared to the prior quarter, revenue improved while operating cash flow weakened from positive to negative. Versus the same quarter a year earlier, revenue was lower and both operating and free cash flow sharply declined from strongly positive to negative.
The shift from positive to negative operating cash flow warrants attention, particularly as revenue increased.