Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter ended March 31, 2024 generated negative free cash flow, a reversal from the prior quarter's positive result and slightly deeper than the negative free cash flow a year ago. Revenue was stable sequentially but lower than the same quarter last year, while operating cash flow turned negative.
- Operating cash flow was negative, leading to negative free cash flow even though capital expenditure was lower than both the prior quarter and the year-ago quarter. The free cash flow margin was negative, reflecting the cash outflow from operations.
- Compared to the immediately preceding quarter, free cash flow and margin weakened sharply as operating cash flow swung from positive to negative. Compared to the same quarter one year earlier, the free cash flow was more negative, while the year-ago quarter also had a negative but smaller free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$125.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$94.0M
Cash generated by operations before capital spending.
CapEx
$31.0M
Capital spending and related asset purchases.
FCF margin
-6.5%
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 | $2.1B | $415.0M | $72.0M | $343.0M | 16.1% |
| 2023-09-30 | $2.0B | $480.0M | $48.0M | $432.0M | 21.8% |
| 2023-12-31 | $1.9B | $485.0M | $62.0M | $423.0M | 22.5% |
| 2024-03-31 | $1.9B | -$94.0M | $31.0M | -$125.0M | -6.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -58.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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 Reversal
Operating cash flow turned negative in the current quarter, compared to a strong positive in the prior quarter and a slightly positive amount a year ago. This was the primary factor driving the negative free cash flow.
The negative operating cash flow caused free cash flow to be negative, reversing the prior quarter's large positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, leading to negative free cash flow even though capital expenditure was lower than both the prior quarter and the year-ago quarter. The free cash flow margin was negative, reflecting the cash outflow from operations.
Compared to the immediately preceding quarter, free cash flow and margin weakened sharply as operating cash flow swung from positive to negative. Compared to the same quarter one year earlier, the free cash flow was more negative, while the year-ago quarter also had a negative but smaller free cash flow.
Monitor the change in receivables and cash balances, as cash and cash investments decreased from the prior year-end while receivables increased.