Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable compared to the previous quarter, but cash conversion weakened substantially, resulting in a large negative free cash flow. The operating cash flow turned negative, while capital expenditure increased from a year ago.
- Despite stable revenue, operating cash flow shifted from positive to negative, leading to a negative free cash flow margin. Capital expenditure was higher than both the preceding quarter and the same quarter last year.
- Compared to the previous quarter, free cash flow weakened sharply from positive to negative, driven by a large swing in operating cash flow. Versus the same quarter last year, the deficit widened even though revenue was higher.
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
-$394.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$281.9M
Cash generated by operations before capital spending.
CapEx
$113.0M
Capital spending and related asset purchases.
FCF margin
-21.6%
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 | $1.8B | $637.3M | $102.5M | $534.8M | 30.6% |
| 2024-06-30 | $1.7B | $677.7M | $103.3M | $574.4M | 33.1% |
| 2024-09-30 | $1.8B | $652.5M | $104.6M | $547.9M | 30.7% |
| 2024-12-31 | $1.8B | -$281.9M | $113.0M | -$394.9M | -21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -89.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.2% | 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 Swing
Operating cash flow reversed from a significant inflow in the prior quarter to a large outflow this quarter, driving the free cash flow negative. This change is the strongest observable factor in the quarter's cash performance.
The operating cash flow swing entirely accounted for the deterioration in free cash flow, overwhelming the relatively stable revenue and higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite stable revenue, operating cash flow shifted from positive to negative, leading to a negative free cash flow margin. Capital expenditure was higher than both the preceding quarter and the same quarter last year.
Compared to the previous quarter, free cash flow weakened sharply from positive to negative, driven by a large swing in operating cash flow. Versus the same quarter last year, the deficit widened even though revenue was higher.
Monitor the trajectory of operating cash flow to assess whether the large outflow is temporary or signals sustained cash generation challenges.