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 prior quarter but lower than the same quarter last year. Operating cash flow turned more negative, leading to a free cash flow deficit that widened from the prior quarter but narrowed from the year-ago quarter.
- Revenue was nearly unchanged from the prior quarter, yet operating cash flow worsened from a small deficit to a larger negative figure. Capital expenditure decreased, but the combined effect produced a free cash flow margin that improved slightly from the prior quarter while remaining negative and weaker than the year-ago period.
- Compared to the prior quarter, revenue was stable, operating cash flow weakened, capital expenditure was lower, and free cash flow improved modestly. Versus the same quarter last year, revenue was lower, operating cash flow turned from positive to negative, capital expenditure decreased, and free cash flow deteriorated.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$106.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$26.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$7.0M
Cash generated by operations before capital spending.
CapEx
$19.6M
Capital spending and related asset purchases.
FCF margin
-7.3%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $370.8M | $49.2M | $36.3M | $12.9M | 3.5% |
| 2023-09-30 | $317.6M | -$2.3M | $57.8M | -$60.1M | -18.9% |
| 2023-12-30 | $366.8M | -$1.5M | $31.0M | -$32.5M | -8.9% |
| 2024-03-30 | $366.5M | -$7.0M | $19.6M | -$26.6M | -7.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 20.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | 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 Deterioration
Operating cash flow shifted from a small deficit in the prior quarter to a larger deficit this quarter, and from positive a year ago to negative now. This is the strongest observable driver of the free cash flow weakness.
The negative operating cash flow directly caused free cash flow to remain in deficit despite lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was nearly unchanged from the prior quarter, yet operating cash flow worsened from a small deficit to a larger negative figure. Capital expenditure decreased, but the combined effect produced a free cash flow margin that improved slightly from the prior quarter while remaining negative and weaker than the year-ago period.
Compared to the prior quarter, revenue was stable, operating cash flow weakened, capital expenditure was lower, and free cash flow improved modestly. Versus the same quarter last year, revenue was lower, operating cash flow turned from positive to negative, capital expenditure decreased, and free cash flow deteriorated.
Monitor whether operating cash flow can return to positive territory, as it has been negative for two consecutive quarters.