Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion was negative this quarter due to operating cash outflow, resulting in a negative free cash flow margin. The sequential comparison shows a marked weakening from the prior quarter's positive cash flow, while the year-ago comparison is broadly similar.
- Revenue matched the year-ago level, but operating cash flow remained negative, driving free cash flow negative as capital expenditure exceeded operating cash inflow. The free cash flow margin was negative, reflecting the shortfall between operating cash generation and capital spending.
- Compared to the prior quarter, revenue was slightly lower while operating cash flow swung from positive to negative, weakening free cash flow and margin materially. Relative to the same quarter last year, revenue was stable, operating cash flow was a smaller negative, and free cash flow and margin improved modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$995.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$171.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$56.8M
Cash generated by operations before capital spending.
CapEx
$114.2M
Capital spending and related asset purchases.
FCF margin
-6.8%
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 |
|---|---|---|---|---|---|
| 2024-02-03 | $3.6B | $1.1B | $124.2M | $994.0M | 28.0% |
| 2024-05-04 | $2.7B | $159.3M | $91.0M | $68.3M | 2.5% |
| 2024-08-03 | $2.6B | $199.5M | $95.3M | $104.3M | 4.1% |
| 2024-11-02 | $2.5B | -$56.8M | $114.2M | -$171.1M | -6.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -70.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | 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 turned negative
Operating cash flow flipped from positive in the prior quarter to negative in the current period, which is the strongest observable driver of the negative free cash flow. This shift occurred despite stable revenue, indicating a change in the timing or magnitude of cash receipts and disbursements.
The negative operating cash flow directly caused free cash flow to turn negative and significantly widened the gap between capital expenditure and internally generated cash.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue matched the year-ago level, but operating cash flow remained negative, driving free cash flow negative as capital expenditure exceeded operating cash inflow. The free cash flow margin was negative, reflecting the shortfall between operating cash generation and capital spending.
Compared to the prior quarter, revenue was slightly lower while operating cash flow swung from positive to negative, weakening free cash flow and margin materially. Relative to the same quarter last year, revenue was stable, operating cash flow was a smaller negative, and free cash flow and margin improved modestly.
Monitor whether operating cash flow can return to positive levels in the next quarter, as this will determine the sustainability of positive free cash flow.