Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable while operating cash flow turned significantly less negative, leading to a narrower free cash flow deficit. The free cash flow margin improved from the preceding quarter and from the same quarter one year earlier.
- Operating cash flow was negative but improved markedly from the prior quarter and the year-ago period, while capital expenditure was higher than the preceding quarter but lower than a year earlier. The combination resulted in a less negative free cash flow and a better free cash flow margin.
- Compared to the preceding quarter, free cash flow and its margin both improved. Versus the same quarter one year earlier, free cash flow also improved, while the margin was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$157.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$55.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$8.9M
Cash generated by operations before capital spending.
CapEx
$46.2M
Capital spending and related asset purchases.
FCF margin
-3.9%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $1.3B | $5.0M | $31.5M | -$26.5M | -2.1% |
| 2023-09-30 | $1.3B | $64.8M | $28.4M | $36.4M | 2.8% |
| 2023-12-31 | $1.4B | -$77.0M | $35.6M | -$112.6M | -8.2% |
| 2024-03-31 | $1.4B | -$8.9M | $46.2M | -$55.1M | -3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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 less negative in the current quarter than in both the preceding quarter and the year-ago quarter, providing the primary support for the narrower free cash flow deficit.
The improvement in operating cash flow directly reduced the free cash outflow despite higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative but improved markedly from the prior quarter and the year-ago period, while capital expenditure was higher than the preceding quarter but lower than a year earlier. The combination resulted in a less negative free cash flow and a better free cash flow margin.
Compared to the preceding quarter, free cash flow and its margin both improved. Versus the same quarter one year earlier, free cash flow also improved, while the margin was less negative.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased sequentially while operating cash flow remained negative.