Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative this quarter due to operating cash flow being negative. Revenue remained stable while capital expenditure was moderate.
- Revenue was stable, but operating cash flow was negative, resulting in a negative free cash flow and a negative free cash flow margin. The large gap between operating income and operating cash flow indicates significant cash conversion challenges this quarter.
- Compared with the prior quarter, cash conversion weakened sharply as operating cash flow turned from positive to negative, and free cash flow margin declined. Compared with the same quarter last year, free cash flow was slightly more negative and the free cash flow margin was slightly lower, though both periods showed similar seasonal cash usage.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$539.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$126.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$107.6M
Cash generated by operations before capital spending.
CapEx
$19.3M
Capital spending and related asset purchases.
FCF margin
-12.5%
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 | $1.1B | $445.1M | $18.8M | $426.3M | 39.4% |
| 2023-09-30 | $1.0B | $162.2M | $19.4M | $142.8M | 14.2% |
| 2023-12-31 | $984.6M | $118.5M | $21.2M | $97.3M | 9.9% |
| 2024-03-31 | $1.0B | -$107.6M | $19.3M | -$126.9M | -12.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -95.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Seasonal Cash Usage Impact
The filing states that the company experiences seasonal cash usage in the first quarter and expects this to reverse in the second quarter. This pattern is observable in the negative operating cash flow for both the current and year-ago first quarters.
Negative operating cash flow is the strongest driver of the negative free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow was negative, resulting in a negative free cash flow and a negative free cash flow margin. The large gap between operating income and operating cash flow indicates significant cash conversion challenges this quarter.
Compared with the prior quarter, cash conversion weakened sharply as operating cash flow turned from positive to negative, and free cash flow margin declined. Compared with the same quarter last year, free cash flow was slightly more negative and the free cash flow margin was slightly lower, though both periods showed similar seasonal cash usage.
Monitor whether operating cash flow turns positive in the next quarter as the company expects seasonal cash usage to reverse.