Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative this quarter, driven by a sharp decline in operating cash flow despite lower capital expenditure. Revenue was slightly lower than the prior quarter but higher than a year ago, while free cash flow margin weakened significantly.
- Revenue was lower than the previous quarter, but operating cash flow turned deeply negative, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure was stable compared to the prior quarter and lower than a year ago, but the cash conversion from revenue to free cash flow weakened substantially.
- Compared to the immediately preceding quarter, free cash flow shifted from positive to negative, with operating cash flow declining sharply while revenue was slightly lower. Versus the same quarter one year earlier, free cash flow also turned negative, as operating cash flow decreased substantially despite higher revenue and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$230.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$217.0M
Cash generated by operations before capital spending.
CapEx
$13.0M
Capital spending and related asset purchases.
FCF margin
-60.7%
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 | $347.0M | $566.0M | $25.0M | $541.0M | 155.9% |
| 2023-12-31 | $361.0M | $1.0B | $43.0M | $994.0M | 275.3% |
| 2024-03-31 | $399.0M | $359.0M | $12.0M | $347.0M | 87.0% |
| 2024-06-30 | $379.0M | -$217.0M | $13.0M | -$230.0M | -60.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -83.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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 Decline
Operating cash flow turned negative this quarter, a significant shift from positive levels in both the prior quarter and the same quarter last year. This change was the strongest observable driver of the free cash flow deterioration.
The negative operating cash flow directly caused free cash flow to become negative, despite relatively stable capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the previous quarter, but operating cash flow turned deeply negative, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure was stable compared to the prior quarter and lower than a year ago, but the cash conversion from revenue to free cash flow weakened substantially.
Compared to the immediately preceding quarter, free cash flow shifted from positive to negative, with operating cash flow declining sharply while revenue was slightly lower. Versus the same quarter one year earlier, free cash flow also turned negative, as operating cash flow decreased substantially despite higher revenue and lower capital expenditure.
Monitor the trajectory of operating cash flow, as its negative swing was the primary factor behind the free cash flow deficit this quarter.