Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter but lower than the same quarter last year. Operating cash flow weakened sequentially and year-over-year, while capital expenditure increased from the prior quarter, resulting in negative free cash flow and a negative margin.
- Operating cash flow as a proportion of revenue declined compared to both the prior quarter and the year-ago quarter, while capital expenditure rose sequentially, causing free cash flow to turn negative and the free cash flow margin to shift from positive to negative.
- Compared to the prior quarter, revenue was stable but operating cash flow was lower and capital expenditure was higher, flipping free cash flow from positive to negative. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, with capital expenditure also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$47.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$74.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$219.3M
Cash generated by operations before capital spending.
CapEx
$294.1M
Capital spending and related asset purchases.
FCF margin
-2.7%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $2.7B | -$80.0M | $383.0M | -$463.0M | -17.3% |
| 2024-06-30 | $2.8B | $847.0M | $333.9M | $513.1M | 18.2% |
| 2024-09-30 | $2.8B | $312.9M | $240.8M | $72.1M | 2.6% |
| 2024-12-31 | $2.8B | $219.3M | $294.1M | -$74.8M | -2.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -44.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.4% | 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.
Capital Expenditure Exceeds Operating Cash Flow
Capital expenditure increased from the prior quarter while operating cash flow declined, causing free cash flow to turn negative. The filing notes that strategic initiatives involve significant capital and other expenditures, and if not effectively managed, costs may exceed expectations.
The gap between capital expenditure and operating cash flow drove free cash flow negative this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue declined compared to both the prior quarter and the year-ago quarter, while capital expenditure rose sequentially, causing free cash flow to turn negative and the free cash flow margin to shift from positive to negative.
Compared to the prior quarter, revenue was stable but operating cash flow was lower and capital expenditure was higher, flipping free cash flow from positive to negative. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, with capital expenditure also lower.
Monitor whether capital expenditure remains elevated relative to operating cash flow, as this was the primary factor behind the negative free cash flow.