Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow was lower than both comparable periods, resulting in negative free cash flow.
- Operating cash flow was a small fraction of revenue, and capital expenditure exceeded operating cash flow, producing negative free cash flow and a negative free cash flow margin.
- Compared to the prior quarter, revenue was lower and operating cash flow was substantially lower. Compared to the same quarter last year, revenue was slightly higher but operating cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$36.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$24.0M
Cash generated by operations before capital spending.
CapEx
$60.0M
Capital spending and related asset purchases.
FCF margin
-1.6%
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 | $2.1B | $296.0M | n/a | n/a | n/a |
| 2023-09-30 | $2.1B | $393.0M | n/a | n/a | n/a |
| 2023-12-31 | $2.9B | $522.0M | n/a | n/a | n/a |
| 2024-03-31 | $2.3B | $24.0M | $60.0M | -$36.0M | -1.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -18.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.1B | 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 Weakness
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while revenue was relatively stable. This divergence is the strongest observable driver of the negative free cash flow.
The gap between operating cash flow and capital expenditure widened, leading to negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was a small fraction of revenue, and capital expenditure exceeded operating cash flow, producing negative free cash flow and a negative free cash flow margin.
Compared to the prior quarter, revenue was lower and operating cash flow was substantially lower. Compared to the same quarter last year, revenue was slightly higher but operating cash flow was lower.
Monitor whether operating cash flow can cover capital expenditure in future quarters.