Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue for the current quarter improved compared with both the immediately preceding quarter and the same quarter one year earlier. However, operating cash flow was substantially lower than both prior periods, resulting in free cash flow of zero and a free cash flow margin of zero.
- Revenue was higher, but operating cash flow was much lower than both the prior quarter and the year-ago quarter, and capital expenditure was similar to the year-ago level. The resulting free cash flow was zero, and the free cash flow margin was zero.
- Revenue improved from both the prior quarter and the same quarter last year. Operating cash flow and free cash flow weakened significantly from the prior quarter and were lower than the same quarter last year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$891.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$0
Free cash flow in the selected fiscal quarter.
Operating cash flow
$13.0M
Cash generated by operations before capital spending.
CapEx
$13.0M
Capital spending and related asset purchases.
FCF margin
0.0%
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 | $1.0B | $328.0M | $13.3M | $314.7M | 30.1% |
| 2023-09-30 | $1.1B | $316.0M | $13.8M | $302.2M | 28.3% |
| 2023-12-31 | $1.0B | $306.0M | $31.0M | $275.0M | 26.8% |
| 2024-03-31 | $1.3B | $13.0M | $13.0M | $0 | 0.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 0.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sharp decline in cash conversion
Operating cash flow fell sharply relative to revenue, dropping from healthy levels in both the prior quarter and the year-ago quarter to a level that was fully consumed by capital expenditure, leaving no free cash flow.
The zero free cash flow margin means the company did not generate any excess cash after capital spending in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, but operating cash flow was much lower than both the prior quarter and the year-ago quarter, and capital expenditure was similar to the year-ago level. The resulting free cash flow was zero, and the free cash flow margin was zero.
Revenue improved from both the prior quarter and the same quarter last year. Operating cash flow and free cash flow weakened significantly from the prior quarter and were lower than the same quarter last year.
Monitor the relationship between revenue and operating cash flow in upcoming quarters, as the current quarter showed a large divergence.