Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened sharply as operating cash flow turned negative, leading to negative free cash flow despite slightly higher revenue. The margin shifted from positive to negative compared to both prior periods.
- Revenue was slightly higher than the prior quarter and higher than the same quarter last year. However, operating cash flow was negative, resulting in negative free cash flow and a negative margin, a significant decline from positive levels in both comparison periods.
- Compared to the previous quarter, operating cash flow and free cash flow moved from positive to negative, while capital expenditure remained stable. Versus the same quarter last year, all cash flow metrics weakened substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$100.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$58.0M
Cash generated by operations before capital spending.
CapEx
$42.0M
Capital spending and related asset purchases.
FCF margin
-27.6%
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 | $353.0M | $898.0M | $60.0M | $838.0M | 237.4% |
| 2024-03-31 | $336.0M | $482.0M | $32.0M | $450.0M | 133.9% |
| 2024-06-30 | $360.0M | $297.0M | $42.0M | $255.0M | 70.8% |
| 2024-09-30 | $362.0M | -$58.0M | $42.0M | -$100.0M | -27.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -19.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.6% | 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 Reversal
Operating cash flow shifted from positive in both prior periods to negative in the current quarter, driving the free cash flow negative.
This reversal is the primary factor behind the weakened cash conversion and negative margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter and higher than the same quarter last year. However, operating cash flow was negative, resulting in negative free cash flow and a negative margin, a significant decline from positive levels in both comparison periods.
Compared to the previous quarter, operating cash flow and free cash flow moved from positive to negative, while capital expenditure remained stable. Versus the same quarter last year, all cash flow metrics weakened substantially.
Monitor whether operating cash flow returns to positive levels in upcoming periods.