Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter after a negative prior quarter, though it remained lower than the same quarter last year. The improvement was driven by a shift from negative to positive operating cash flow, while capital expenditure was slightly reduced.
- Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow turned positive from a negative prior quarter but was lower than the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter. Free cash flow margin improved from negative to positive sequentially but weakened compared to the same quarter last year.
- Compared to the prior quarter, free cash flow improved from negative to positive, driven by a significant increase in operating cash flow. Compared to the same quarter last year, free cash flow was lower, as operating cash flow decreased and capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$211.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$136.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$213.0M
Cash generated by operations before capital spending.
CapEx
$77.0M
Capital spending and related asset purchases.
FCF margin
4.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $3.2B | $562.0M | $114.0M | $448.0M | 14.1% |
| 2024-03-31 | $2.8B | -$202.0M | $72.0M | -$274.0M | -9.8% |
| 2024-06-30 | $3.0B | -$9.0M | $90.0M | -$99.0M | -3.3% |
| 2024-09-30 | $2.7B | $213.0M | $77.0M | $136.0M | 4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | 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 Recovery
Operating cash flow turned positive in the current quarter after a negative prior quarter, which was the primary factor behind the improvement in free cash flow. This shift occurred despite lower revenue.
The positive operating cash flow enabled free cash flow to turn positive, reversing the prior quarter's negative position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow turned positive from a negative prior quarter but was lower than the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter. Free cash flow margin improved from negative to positive sequentially but weakened compared to the same quarter last year.
Compared to the prior quarter, free cash flow improved from negative to positive, driven by a significant increase in operating cash flow. Compared to the same quarter last year, free cash flow was lower, as operating cash flow decreased and capital expenditure increased.
Monitor the trend in operating cash flow, as it swung from negative to positive but remained below the year-ago level.