Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter one year earlier, while free cash flow improved from a larger negative position. Operating cash flow remained negative but was less negative than the prior year, and capital expenditure was lower.
- Revenue was unchanged year over year, but operating cash flow improved from a larger negative to a smaller negative, and capital expenditure decreased, resulting in a less negative free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow shifted from positive to negative, capital expenditure decreased, and free cash flow turned from positive to negative with a weakened margin. Compared to the same quarter one year earlier, revenue was stable, operating cash flow was less negative, capital expenditure was lower, and free cash flow was less negative with an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$547.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$52.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$22.8M
Cash generated by operations before capital spending.
CapEx
$29.5M
Capital spending and related asset purchases.
FCF margin
-5.0%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $1.4B | $195.5M | $49.9M | $145.6M | 10.3% |
| 2023-09-30 | $1.4B | $313.2M | $39.7M | $273.5M | 20.0% |
| 2023-12-31 | $1.2B | $306.3M | $125.2M | $181.1M | 15.7% |
| 2024-03-31 | $1.0B | -$22.8M | $29.5M | -$52.3M | -5.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -42.1% | 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.
Improved Operating Cash Flow
Operating cash flow was negative but improved compared to the same quarter one year earlier, moving from a larger negative to a smaller negative. The filing attributes the change to working capital movements and higher net income.
This improvement directly reduced the free cash outflow and narrowed the negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged year over year, but operating cash flow improved from a larger negative to a smaller negative, and capital expenditure decreased, resulting in a less negative free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow shifted from positive to negative, capital expenditure decreased, and free cash flow turned from positive to negative with a weakened margin. Compared to the same quarter one year earlier, revenue was stable, operating cash flow was less negative, capital expenditure was lower, and free cash flow was less negative with an improved margin.
Monitor the change in net cash used in operating activities, which the filing notes reflects changes in working capital and an increase in net income.