Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, yet free cash flow turned negative due to operating cash flow being lower than capital expenditure. The cash conversion weakened significantly from the preceding quarter and also declined from the year-ago period.
- Operating cash flow was lower than capital expenditure, resulting in negative free cash flow and a negative free cash flow margin, despite higher revenue. This indicates that cash generation from operations did not cover investment in fixed assets during the quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were both substantially lower, and the free cash flow margin turned from positive to negative. Versus the same quarter one year earlier, operating cash flow was slightly lower, while capital expenditure was higher, resulting in a weaker free cash flow position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$15.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$164.0M
Cash generated by operations before capital spending.
CapEx
$179.0M
Capital spending and related asset purchases.
FCF margin
-0.4%
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 | $3.6B | $658.0M | $143.0M | $515.0M | 14.3% |
| 2023-09-30 | $3.5B | $698.0M | $190.0M | $508.0M | 14.4% |
| 2023-12-31 | $3.7B | $957.0M | $267.0M | $690.0M | 18.5% |
| 2024-03-31 | $3.9B | $164.0M | $179.0M | -$15.0M | -0.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -3.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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 shortfall
Operating cash flow was insufficient to fund capital expenditure, driving free cash flow negative. This occurred despite revenue being higher than both the prior quarter and the year-ago quarter.
The negative free cash flow and margin represent a significant weakening in cash generation efficiency relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than capital expenditure, resulting in negative free cash flow and a negative free cash flow margin, despite higher revenue. This indicates that cash generation from operations did not cover investment in fixed assets during the quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were both substantially lower, and the free cash flow margin turned from positive to negative. Versus the same quarter one year earlier, operating cash flow was slightly lower, while capital expenditure was higher, resulting in a weaker free cash flow position.
Monitor whether operating cash flow can improve to consistently cover capital expenditure, given the current gap that led to negative free cash flow.