Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
SoFi's free cash flow deficit narrowed sharply in the fourth quarter, driven by a substantial improvement in operating cash flow. Revenue continued to grow, while capital expenditure remained relatively stable.
- Revenue increased, but operating cash flow remained negative, though at a much lower level than the prior quarter. Free cash flow and free cash flow margin both improved as capital expenditure did not change significantly.
- Compared to the prior quarter, free cash flow and free cash flow margin improved considerably. Versus the same quarter a year earlier, the deficit also narrowed, with revenue higher and operating cash flow less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$242.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$200.1M
Cash generated by operations before capital spending.
CapEx
$42.3M
Capital spending and related asset purchases.
FCF margin
-178.9%
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 | $115.6M | $738.2M | $32.0M | $706.3M | 610.9% |
| 2024-06-30 | $120.8M | -$484.4M | $36.7M | -$521.1M | -431.4% |
| 2024-09-30 | $131.2M | -$1.2B | $43.3M | -$1.2B | -927.3% |
| 2024-12-31 | $135.5M | -$200.1M | $42.3M | -$242.4M | -178.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -72.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.2% | 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 improvement
Operating cash flow was significantly less negative compared to the prior quarter, driving the improvement in free cash flow. This was the strongest observable factor in the quarter's cash generation.
This reduced the company's free cash outflow and improved its margin, strengthening its cash position relative to the previous quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but operating cash flow remained negative, though at a much lower level than the prior quarter. Free cash flow and free cash flow margin both improved as capital expenditure did not change significantly.
Compared to the prior quarter, free cash flow and free cash flow margin improved considerably. Versus the same quarter a year earlier, the deficit also narrowed, with revenue higher and operating cash flow less negative.
Monitor the liquidity risks associated with potential early amortization events or defaults under warehouse facilities and securitizations, which could restrict loan origination capacity.