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 and the year-ago quarter. Operating cash flow turned deeply negative, driving a large free cash outflow and a sharply negative margin.
- Despite stable revenue, operating cash flow was negative, resulting in negative free cash flow and a negative margin. Capital expenditure was lower than the prior quarter but slightly higher than a year ago.
- Compared to the prior quarter, operating cash flow and free cash flow weakened from positive to negative, and the margin turned from positive to negative. Versus the same quarter last year, operating cash flow and free cash flow were also lower, and the margin became more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.5B
Cash generated by operations before capital spending.
CapEx
$14.3M
Capital spending and related asset purchases.
FCF margin
-128.3%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $1.1B | -$99.4M | $20.1M | -$119.5M | -10.9% |
| 2023-09-30 | $1.1B | $86.7M | $21.1M | $65.6M | 5.9% |
| 2023-12-31 | $1.1B | $2.8B | $63.8M | $2.7B | 251.3% |
| 2024-03-31 | $1.1B | -$1.5B | $14.3M | -$1.5B | -128.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -683.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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 Swing
Operating cash flow shifted from positive in the prior quarter to negative this quarter, and was also lower than the year-ago quarter. This was the primary factor behind the negative free cash flow.
The negative operating cash flow drove free cash flow deeply negative and the margin to a large negative percentage.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite stable revenue, operating cash flow was negative, resulting in negative free cash flow and a negative margin. Capital expenditure was lower than the prior quarter but slightly higher than a year ago.
Compared to the prior quarter, operating cash flow and free cash flow weakened from positive to negative, and the margin turned from positive to negative. Versus the same quarter last year, operating cash flow and free cash flow were also lower, and the margin became more negative.
Monitor whether operating cash flow returns to positive levels in the coming quarter.