Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the prior quarter but lower than the same quarter last year. Free cash flow turned negative and weakened compared to both periods.
- Operating cash flow was negative and capital expenditure remained modest, resulting in a negative free cash flow margin. The conversion of revenue into free cash flow deteriorated relative to the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow was lower and the margin weakened. Versus the same quarter one year earlier, free cash flow shifted from positive to negative and the margin declined sharply.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$407.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$399.0M
Cash generated by operations before capital spending.
CapEx
$8.0M
Capital spending and related asset purchases.
FCF margin
-26.9%
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 | $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% |
| 2024-06-30 | $1.5B | -$399.0M | $8.0M | -$407.0M | -26.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 442.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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 Deterioration
Operating cash flow was negative and significantly lower than both the prior quarter and the year-ago quarter, despite revenue being higher than the prior quarter.
This drove the free cash flow to a larger deficit and a weaker margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative and capital expenditure remained modest, resulting in a negative free cash flow margin. The conversion of revenue into free cash flow deteriorated relative to the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow was lower and the margin weakened. Versus the same quarter one year earlier, free cash flow shifted from positive to negative and the margin declined sharply.
Monitor the trajectory of operating cash flow given its significant swing from positive to negative year over year.