Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative and significantly lower than both the prior quarter and the same quarter last year, driven by a larger operating cash outflow. Revenue was stable compared to a year ago but slightly lower than the preceding quarter.
- Revenue was stable year over year, but operating cash flow turned from a small inflow to a large outflow, resulting in a much wider negative free cash flow margin. Capital expenditure was slightly higher than a year ago but lower than the prior quarter.
- Compared to the prior quarter, revenue was lower, operating cash flow weakened from a small outflow to a much larger outflow, and free cash flow margin worsened. Versus the same quarter last year, revenue was stable, but operating cash flow shifted from positive to negative, and free cash flow margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$357.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$226.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$191.0M
Cash generated by operations before capital spending.
CapEx
$35.1M
Capital spending and related asset purchases.
FCF margin
-16.9%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $1.3B | -$191.0M | $35.1M | -$226.1M | -16.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 86.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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 Deterioration
Operating cash flow turned from a small positive amount a year ago and a small negative amount last quarter to a significantly larger negative amount this quarter. This change is the strongest observable driver of the free cash flow decline.
The larger operating cash outflow directly caused free cash flow to become more negative despite relatively stable revenue and capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable year over year, but operating cash flow turned from a small inflow to a large outflow, resulting in a much wider negative free cash flow margin. Capital expenditure was slightly higher than a year ago but lower than the prior quarter.
Compared to the prior quarter, revenue was lower, operating cash flow weakened from a small outflow to a much larger outflow, and free cash flow margin worsened. Versus the same quarter last year, revenue was stable, but operating cash flow shifted from positive to negative, and free cash flow margin declined.
Monitor whether operating cash flow can return to positive levels in upcoming quarters, as the current outflow is the primary factor behind the negative free cash flow.