Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter, but improved from the prior quarter. Compared to the same quarter a year earlier, free cash flow turned from positive to negative.
- Revenue was higher than both the prior quarter and the same quarter a year earlier. Operating cash flow remained negative but improved from the prior quarter, while capital expenditure was slightly higher. The free cash flow margin was negative but improved sequentially.
- Sequentially, revenue was higher, operating cash flow was less negative, free cash flow was less negative, and the free cash flow margin improved. Year-over-year, revenue was higher, but operating cash flow and free cash flow turned from positive to negative, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$559.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$165.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$128.4M
Cash generated by operations before capital spending.
CapEx
$36.8M
Capital spending and related asset purchases.
FCF margin
-12.2%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $1.4B | -$128.4M | $36.8M | -$165.2M | -12.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 45.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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.
Sequential improvement in operating cash flow
Operating cash flow was less negative compared to the prior quarter, which reduced the free cash outflow despite a slight increase in capital expenditure.
This improvement narrowed the free cash flow deficit relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the same quarter a year earlier. Operating cash flow remained negative but improved from the prior quarter, while capital expenditure was slightly higher. The free cash flow margin was negative but improved sequentially.
Sequentially, revenue was higher, operating cash flow was less negative, free cash flow was less negative, and the free cash flow margin improved. Year-over-year, revenue was higher, but operating cash flow and free cash flow turned from positive to negative, and the margin weakened.
Monitor the trend in software development costs and licenses, which represent a significant asset on the balance sheet.