Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative in the current quarter, driven by a negative operating cash flow, while capital expenditure was lower than both prior periods. Compared to the same quarter last year, free cash flow improved, but it weakened sharply from the preceding quarter.
- Revenue was higher than both prior quarters, but operating cash flow was negative, resulting in a negative free cash flow margin. The conversion of revenue into cash was negative, contrasting with the positive conversion in the prior quarter.
- Compared to the prior quarter, free cash flow declined from positive to negative, while compared to the same quarter a year ago, the free cash flow deficit narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$75.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$54.4M
Cash generated by operations before capital spending.
CapEx
$21.0M
Capital spending and related asset purchases.
FCF margin
-5.1%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $1.4B | $331.3M | $46.7M | $284.6M | 19.7% |
| 2023-09-30 | $1.4B | $354.1M | $39.2M | $314.9M | 21.8% |
| 2023-12-31 | $1.4B | $714.3M | $40.3M | $674.0M | 47.7% |
| 2024-03-31 | $1.5B | -$54.4M | $21.0M | -$75.4M | -5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -53.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$361.8M | 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 Swing
Operating cash flow shifted from a large positive amount in the prior quarter to a negative amount in the current quarter. This swing was the strongest observable driver of the change in free cash flow.
This swing caused free cash flow to turn negative despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both prior quarters, but operating cash flow was negative, resulting in a negative free cash flow margin. The conversion of revenue into cash was negative, contrasting with the positive conversion in the prior quarter.
Compared to the prior quarter, free cash flow declined from positive to negative, while compared to the same quarter a year ago, the free cash flow deficit narrowed.
Monitor operating cash flow, as it is the primary driver of free cash flow changes.