Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative but improved significantly from the prior quarter and the year-ago quarter, driven by a higher operating cash flow. Revenue was stable sequentially but lower year over year.
- Operating cash flow improved to a level that, despite a lower capital expenditure, resulted in a less negative free cash flow and a narrower free cash flow margin compared to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was stable while operating cash flow was higher, capital expenditure was lower, and free cash flow was less negative. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow was higher, capital expenditure was lower, and free cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$83.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$367.7M
Cash generated by operations before capital spending.
CapEx
$451.6M
Capital spending and related asset purchases.
FCF margin
-5.9%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $1.4B | $367.7M | $451.6M | -$83.9M | -5.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 44.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.7B | 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 Improvement
Operating cash flow was higher than both the prior quarter and the year-ago quarter, which was the primary factor behind the less negative free cash flow.
The improvement in operating cash flow reduced the free cash flow deficit despite revenue being lower year over year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved to a level that, despite a lower capital expenditure, resulted in a less negative free cash flow and a narrower free cash flow margin compared to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was stable while operating cash flow was higher, capital expenditure was lower, and free cash flow was less negative. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow was higher, capital expenditure was lower, and free cash flow was less negative.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap between them narrowed this quarter but remained significant.