Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was negative but improved significantly from the prior quarter. Revenue increased sequentially while operating cash flow narrowed its deficit, though both metrics weakened compared to the same quarter a year earlier.
- Cash conversion was negative as operating cash flow was insufficient to cover capital expenditure, resulting in a free cash flow deficit and a negative free cash flow margin.
- Compared to the prior quarter, free cash flow improved as operating cash flow was less negative, while capital expenditure remained stable. Compared to the same quarter a year earlier, free cash flow weakened sharply as operating cash flow turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$33.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$186.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$178.0M
Cash generated by operations before capital spending.
CapEx
$8.0M
Capital spending and related asset purchases.
FCF margin
-15.7%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $2.0B | $940.0M | $9.0M | $931.0M | 47.1% |
| 2023-09-30 | $980.0M | -$216.0M | $11.0M | -$227.0M | -23.2% |
| 2023-12-31 | $870.0M | -$542.0M | $9.0M | -$551.0M | -63.3% |
| 2024-03-31 | $1.2B | -$178.0M | $8.0M | -$186.0M | -15.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 170.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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
Operating cash flow improved markedly from the prior quarter, reducing the free cash flow deficit. This improvement occurred alongside a sequential increase in revenue.
The narrower free cash flow deficit reduces the company's near-term cash consumption.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion was negative as operating cash flow was insufficient to cover capital expenditure, resulting in a free cash flow deficit and a negative free cash flow margin.
Compared to the prior quarter, free cash flow improved as operating cash flow was less negative, while capital expenditure remained stable. Compared to the same quarter a year earlier, free cash flow weakened sharply as operating cash flow turned from positive to negative.
Monitor the sustainability of the operating cash flow improvement, given the seasonal nature of the residential real estate market and the potential for broader economic factors to influence results.