Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive, driving free cash flow to a positive margin after two consecutive negative quarters. Revenue was lower than the prior quarter but higher than the same quarter last year.
- Revenue declined from the prior quarter, yet operating cash flow improved sharply from negative to positive, resulting in a positive free cash flow margin. Capital expenditure was slightly lower than both comparison periods.
- Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow both improved from negative to positive. Versus the same quarter last year, revenue was higher and both cash flow measures also improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$56.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$62.0M
Cash generated by operations before capital spending.
CapEx
$6.0M
Capital spending and related asset purchases.
FCF margin
4.1%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $1.4B | $62.0M | $6.0M | $56.0M | 4.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -71.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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.
Operating Cash Flow Turnaround
Operating cash flow shifted from negative in both the prior quarter and the year-ago quarter to positive in the current quarter, which was the primary factor behind the positive free cash flow.
This improvement directly enabled free cash flow to become positive after two prior periods of negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter, yet operating cash flow improved sharply from negative to positive, resulting in a positive free cash flow margin. Capital expenditure was slightly lower than both comparison periods.
Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow both improved from negative to positive. Versus the same quarter last year, revenue was higher and both cash flow measures also improved from negative to positive.
Monitor whether operating cash flow can sustain its positive trajectory given the seasonal patterns noted in the filing.