Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased slightly from the prior quarter but remained higher than the same quarter last year. Operating cash flow turned negative, resulting in a negative free cash flow margin, a significant weakening from the prior quarter.
- Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, yielding a negative free cash flow margin. This represents a sharp decline in cash conversion efficiency compared to the prior quarter when both operating cash flow and free cash flow were positive.
- Compared to the immediately preceding quarter, revenue was slightly lower, while operating cash flow and free cash flow both shifted from positive to negative, and the free cash flow margin weakened considerably. Versus the same quarter one year earlier, revenue was higher, and the negative free cash flow margin improved from a more negative level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$267.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$239.8M
Cash generated by operations before capital spending.
CapEx
$27.5M
Capital spending and related asset purchases.
FCF margin
-4.7%
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 | $3.9B | -$1.5B | $92.9M | -$1.6B | -41.7% |
| 2024-06-30 | $5.4B | -$647.8M | $14.0M | -$661.8M | -12.4% |
| 2024-09-30 | $5.9B | $408.9M | $44.3M | $364.6M | 6.1% |
| 2024-12-31 | $5.7B | -$239.8M | $27.5M | -$267.3M | -4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -83.4% | 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 Turned Negative
Operating cash flow moved from a positive amount in the prior quarter to a negative amount this quarter, which was the primary factor behind the negative free cash flow. The filing context notes that recent liquidity drivers included increased working capital needs due to higher inventory levels.
The negative operating cash flow directly caused free cash flow to be negative, reversing the positive cash generation seen in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, yielding a negative free cash flow margin. This represents a sharp decline in cash conversion efficiency compared to the prior quarter when both operating cash flow and free cash flow were positive.
Compared to the immediately preceding quarter, revenue was slightly lower, while operating cash flow and free cash flow both shifted from positive to negative, and the free cash flow margin weakened considerably. Versus the same quarter one year earlier, revenue was higher, and the negative free cash flow margin improved from a more negative level.
Monitor whether operating cash flow can return to positive levels in the coming quarter, as the current negative cash flow represents a notable shift from the prior period.