Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than both the prior quarter and the same quarter last year. Operating cash flow improved from the prior quarter but was lower than a year ago, while capital expenditure increased, leading to a larger negative free cash flow and a weaker free cash flow margin.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than a year ago. The combination of elevated capital expenditure and lower operating cash flow relative to the year-ago period resulted in a more negative free cash flow and a weaker margin.
- Compared to the prior quarter, revenue was slightly lower while operating cash flow improved, but capital expenditure increased, resulting in a more negative free cash flow and a weaker margin. Versus the same quarter last year, revenue was slightly lower, operating cash flow was lower, capital expenditure was higher, and free cash flow was more negative with a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$445.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$557.0M
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
-26.3%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $1.7B | $557.0M | $1.0B | -$445.0M | -26.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -171.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 59.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.1B | 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 Increase
Capital expenditure was higher than both the prior quarter and the same quarter last year, which was the strongest observable factor behind the more negative free cash flow and weaker margin.
The higher capital expenditure directly reduced free cash flow and margin, despite operating cash flow improving from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than a year ago. The combination of elevated capital expenditure and lower operating cash flow relative to the year-ago period resulted in a more negative free cash flow and a weaker margin.
Compared to the prior quarter, revenue was slightly lower while operating cash flow improved, but capital expenditure increased, resulting in a more negative free cash flow and a weaker margin. Versus the same quarter last year, revenue was slightly lower, operating cash flow was lower, capital expenditure was higher, and free cash flow was more negative with a weaker margin.
Monitor the trend in capital expenditure relative to operating cash flow, as the gap widened this quarter compared to both the prior quarter and the year-ago period.