Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was deeply negative, leading to a large free cash outflow and an extremely negative margin. Revenue rose from both the prior quarter and the year-ago quarter, but cash generation weakened markedly versus the prior quarter.
- Revenue of about one hundred twenty million dollars was not enough to cover operating cash outflows of negative four hundred eighty-four million dollars, yielding negative free cash flow and a free cash flow margin below negative four hundred percent. Capital expenditure remained moderate relative to the cash outflow.
- Compared to the immediately preceding quarter, free cash flow shifted from a large positive to a large negative, a major weakening. Versus the same quarter one year earlier, free cash flow was less negative, an improvement on that basis.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$521.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$484.4M
Cash generated by operations before capital spending.
CapEx
$36.7M
Capital spending and related asset purchases.
FCF margin
-431.4%
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 | $104.9M | -$2.7B | $28.0M | -$2.7B | -2586.7% |
| 2023-12-31 | $116.3M | -$247.9M | $34.3M | -$282.2M | -242.6% |
| 2024-03-31 | $115.6M | $738.2M | $32.0M | $706.3M | 610.9% |
| 2024-06-30 | $120.8M | -$484.4M | $36.7M | -$521.1M | -431.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -2994.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 30.4% | 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 swing
The shift from operating cash inflow to a large outflow drove the entire change in free cash flow. Capital expenditure remained relatively stable across periods.
Without a positive operating cash flow, the company relied on other sources to fund capital expenditure and operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue of about one hundred twenty million dollars was not enough to cover operating cash outflows of negative four hundred eighty-four million dollars, yielding negative free cash flow and a free cash flow margin below negative four hundred percent. Capital expenditure remained moderate relative to the cash outflow.
Compared to the immediately preceding quarter, free cash flow shifted from a large positive to a large negative, a major weakening. Versus the same quarter one year earlier, free cash flow was less negative, an improvement on that basis.
Monitor the trend of operating cash flow, which swung from positive to deeply negative quarter over quarter.