Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Free cash flow was negative but improved from the prior quarter and the year-ago quarter, driven by a smaller operating cash outflow.
- Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. The conversion from revenue to free cash flow remained weak, though the margin narrowed compared to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, operating cash outflow decreased, capital expenditure increased slightly, and free cash flow improved. Compared to the same quarter last year, operating cash outflow decreased, capital expenditure increased, and free cash flow also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$494.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$48.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.8M
Cash generated by operations before capital spending.
CapEx
$43.4M
Capital spending and related asset purchases.
FCF margin
-3.5%
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 | $1.4B | -$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% |
| 2024-12-31 | $1.4B | -$4.8M | $43.4M | -$48.2M | -3.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 38.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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 Outflow Reduction
The operating cash outflow was lower than both the prior quarter and the year-ago quarter, which was the primary factor behind the improvement in free cash flow.
This reduction narrowed the negative free cash flow margin from the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. The conversion from revenue to free cash flow remained weak, though the margin narrowed compared to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, operating cash outflow decreased, capital expenditure increased slightly, and free cash flow improved. Compared to the same quarter last year, operating cash outflow decreased, capital expenditure increased, and free cash flow also improved.
Monitor whether operating cash flow can turn positive in future quarters, as it has remained negative for three consecutive quarters.