Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow decreased while capital expenditure increased, resulting in a more negative free cash flow compared to the prior quarter and the same quarter a year ago. The free cash flow margin was negative as capital outlays exceeded cash from operations.
- Revenue was converted into operating cash flow, but capital spending substantially exceeded that amount, yielding negative free cash flow.
- Operating cash flow was lower than both the immediately preceding quarter and the same quarter one year earlier. Capital expenditure was higher in both comparisons, leading to a larger free cash flow deficit.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$814.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$325.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$345.0M
Cash generated by operations before capital spending.
CapEx
$670.0M
Capital spending and related asset purchases.
FCF margin
-28.5%
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 | n/a | $633.0M | $626.0M | $7.0M | n/a |
| 2023-12-31 | n/a | $527.0M | $796.0M | -$269.0M | n/a |
| 2024-03-31 | n/a | $382.0M | $609.0M | -$227.0M | n/a |
| 2024-06-30 | $1.1B | $345.0M | $670.0M | -$325.0M | -28.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -117.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 58.8% | 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.
Capital Expenditure Growth
Capital expenditure increased compared to both prior periods, while operating cash flow declined. This combination resulted in a more negative free cash flow.
Higher capital spending relative to cash generation is pressuring free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was converted into operating cash flow, but capital spending substantially exceeded that amount, yielding negative free cash flow.
Operating cash flow was lower than both the immediately preceding quarter and the same quarter one year earlier. Capital expenditure was higher in both comparisons, leading to a larger free cash flow deficit.
Monitor the trend in capital expenditure relative to operating cash flow, as the gap widened significantly.