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 higher operating cash flow. The free cash flow margin also improved, reflecting better cash conversion during the period.
- Revenue was stable compared to the year-ago quarter and slightly higher than the prior quarter. Operating cash flow increased, while capital expenditure was lower than the prior quarter but higher than a year ago, resulting in a less negative free cash flow and an improved margin.
- Compared to the prior quarter, operating cash flow was higher and capital expenditure was lower, leading to a less negative free cash flow and a stronger margin. Versus the year-ago quarter, operating cash flow was also higher, though capital expenditure increased, yet free cash flow and margin still improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$345.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$1.6B
Capital spending and related asset purchases.
FCF margin
-11.6%
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 | $3.0B | $845.4M | $1.3B | -$477.0M | -15.7% |
| 2023-12-31 | $3.0B | $626.6M | $1.4B | -$818.9M | -27.3% |
| 2024-03-31 | $2.9B | $801.7M | $1.7B | -$867.7M | -29.6% |
| 2024-06-30 | $3.0B | $1.3B | $1.6B | -$345.2M | -11.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -49.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 53.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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, while capital expenditure was lower sequentially. This combination narrowed the free cash flow deficit and improved the margin.
The stronger operating cash flow was the primary factor reducing the free cash flow shortfall in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the year-ago quarter and slightly higher than the prior quarter. Operating cash flow increased, while capital expenditure was lower than the prior quarter but higher than a year ago, resulting in a less negative free cash flow and an improved margin.
Compared to the prior quarter, operating cash flow was higher and capital expenditure was lower, leading to a less negative free cash flow and a stronger margin. Versus the year-ago quarter, operating cash flow was also higher, though capital expenditure increased, yet free cash flow and margin still improved.
Monitor the relationship between operating cash flow and capital expenditure, as capital expenditure remains elevated relative to cash generation.