Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined sharply from both the prior quarter and the same quarter last year. Operating cash flow turned positive sequentially but remained far below the year-ago level, while free cash flow was deeply negative due to elevated capital expenditure.
- Revenue fell substantially, yet operating cash flow improved from negative to positive, indicating a shift in cash conversion relative to sales. However, the free cash flow margin remained deeply negative as capital expenditure consumed a large portion of operating cash flow.
- Compared to the prior quarter, revenue was lower but operating cash flow improved, leading to a less negative free cash flow. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$485.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$97.5M
Cash generated by operations before capital spending.
CapEx
$583.0M
Capital spending and related asset purchases.
FCF margin
-35.7%
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 | $2.4B | $73.7M | $503.7M | -$430.0M | -18.1% |
| 2023-09-30 | $2.3B | $628.9M | $545.9M | $83.0M | 3.6% |
| 2023-12-31 | $2.4B | -$97.0M | $689.3M | -$786.3M | -33.4% |
| 2024-03-31 | $1.4B | $97.5M | $583.0M | -$485.6M | -35.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -19834.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 42.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 Pressure
Capital expenditure was higher than operating cash flow, resulting in a large negative free cash flow. This pattern was consistent with the prior quarter, though the gap narrowed slightly.
The elevated capital expenditure is the strongest observable driver of the negative free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue fell substantially, yet operating cash flow improved from negative to positive, indicating a shift in cash conversion relative to sales. However, the free cash flow margin remained deeply negative as capital expenditure consumed a large portion of operating cash flow.
Compared to the prior quarter, revenue was lower but operating cash flow improved, leading to a less negative free cash flow. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened from positive to negative.
Monitor whether capital expenditure remains elevated relative to operating cash flow, as this is the primary factor sustaining the negative free cash flow.