Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose relative to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow remained negative but improved significantly, resulting in a narrower free cash flow margin.
- Despite higher revenue, operating cash flow was negative, and capital expenditure increased. The combination yielded negative free cash flow, though the free cash flow margin improved from the prior and year-ago quarters.
- Compared to the immediately preceding quarter, both revenue and operating cash flow improved, and free cash flow was less negative, while capital expenditure was higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were less negative, and capital expenditure was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$180.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$141.7M
Cash generated by operations before capital spending.
CapEx
$39.2M
Capital spending and related asset purchases.
FCF margin
-4.7%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $3.6B | $405.5M | $24.2M | $381.3M | 10.7% |
| 2023-12-31 | $4.1B | $1.8B | $14.2M | $1.8B | 44.0% |
| 2024-03-31 | $3.6B | -$618.5M | $23.1M | -$641.6M | -17.7% |
| 2024-06-30 | $3.9B | -$141.7M | $39.2M | -$180.9M | -4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -55.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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 Improvement
The most significant observable driver was the improvement in operating cash flow, which shifted from a larger deficit in the prior quarter and year-ago quarter to a smaller deficit in the current quarter.
This improvement drove a narrower free cash flow deficit, even with higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative, and capital expenditure increased. The combination yielded negative free cash flow, though the free cash flow margin improved from the prior and year-ago quarters.
Compared to the immediately preceding quarter, both revenue and operating cash flow improved, and free cash flow was less negative, while capital expenditure was higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were less negative, and capital expenditure was also higher.
Monitor the trajectory of operating cash flow, as it remains negative despite recent improvement.