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, with operating cash flow insufficient to cover capital expenditure. Revenue was higher than the prior quarter but lower than the same quarter last year.
- Operating cash flow was lower than capital expenditure, resulting in negative free cash flow and a negative free cash flow margin. The margin improved from the prior quarter but weakened slightly compared to the same quarter last year.
- Compared to the prior quarter, revenue was higher and capital expenditure was lower, leading to an improved free cash flow margin. Compared to the same quarter last year, revenue was lower and operating cash flow was slightly lower, with a similar free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$996.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$398.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$492.0M
Cash generated by operations before capital spending.
CapEx
$890.0M
Capital spending and related asset purchases.
FCF margin
-21.9%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $1.8B | $615.0M | $891.0M | -$276.0M | -15.7% |
| 2023-09-30 | $2.1B | $920.0M | $749.0M | $171.0M | 8.3% |
| 2023-12-31 | $1.6B | $533.0M | $1.0B | -$493.0M | -30.5% |
| 2024-03-31 | $1.8B | $492.0M | $890.0M | -$398.0M | -21.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -151.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 49.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure relative to operating cash flow
Capital expenditure remained higher than operating cash flow, driving the negative free cash flow. The gap narrowed compared to the prior quarter but remained substantial.
This sustained gap is the primary observable factor behind the 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 lower than capital expenditure, resulting in negative free cash flow and a negative free cash flow margin. The margin improved from the prior quarter but weakened slightly compared to the same quarter last year.
Compared to the prior quarter, revenue was higher and capital expenditure was lower, leading to an improved free cash flow margin. Compared to the same quarter last year, revenue was lower and operating cash flow was slightly lower, with a similar free cash flow margin.
Monitor the relationship between operating cash flow and capital expenditure, as capital expenditure continues to exceed operating cash flow.