Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative in the current quarter, reversing the positive performance of the prior quarter. The year-over-year comparison shows significant improvement from a deeply negative cash flow position a year ago.
- Revenue declined from the previous quarter while operating cash flow shifted from positive to negative, resulting in a negative free cash flow margin. Capital expenditure remained minimal and stable.
- Compared to the prior quarter, cash generation weakened as both operating cash flow and free cash flow turned negative. Versus the same quarter last year, cash flow metrics improved substantially, with a much smaller negative margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$620.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$83.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$80.0M
Cash generated by operations before capital spending.
CapEx
$3.0M
Capital spending and related asset purchases.
FCF margin
-7.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $1.1B | -$80.0M | $3.0M | -$83.0M | -7.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 73.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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.
Revenue Decline Impacting Cash Flow
The drop in revenue relative to the prior quarter was the most visible change in financial metrics, coinciding with the shift from positive to negative operating cash flow. This combination drove the negative free cash flow.
Unless revenue stabilizes or operating cost dynamics adjust, negative free cash flow may persist.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the previous quarter while operating cash flow shifted from positive to negative, resulting in a negative free cash flow margin. Capital expenditure remained minimal and stable.
Compared to the prior quarter, cash generation weakened as both operating cash flow and free cash flow turned negative. Versus the same quarter last year, cash flow metrics improved substantially, with a much smaller negative margin.
Monitor whether operating cash flow can return to positive territory in upcoming quarters.