Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was negative and free cash flow was negative, with a negative margin. Revenue was lower than the prior quarter but higher than the same quarter a year ago.
- Cash conversion was weak as operating cash flow was negative, leading to negative free cash flow after capital expenditure. The negative margin reflected that cash generation did not keep pace with revenue.
- Compared to the prior quarter, operating cash flow and free cash flow both shifted from positive to negative, and margin turned negative. Relative to the same quarter a year earlier, operating cash flow and free cash flow remained negative but improved, and margin weakened less.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$420.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$560.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$492.0M
Cash generated by operations before capital spending.
CapEx
$68.0M
Capital spending and related asset purchases.
FCF margin
-7.2%
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 | $7.6B | -$11.0M | $75.0M | -$86.0M | -1.1% |
| 2023-09-30 | $7.7B | $383.0M | $76.0M | $307.0M | 4.0% |
| 2023-12-31 | $8.9B | $853.0M | $94.0M | $759.0M | 8.6% |
| 2024-03-31 | $7.8B | -$492.0M | $68.0M | -$560.0M | -7.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -444.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | 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 weakness
Operating cash flow turned negative this quarter after being positive in the prior quarter, contributing directly to negative free cash flow. This shift is the strongest observable driver of the cash conversion decline.
Free cash flow was negative, versus positive in the prior quarter, and the margin turned negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion was weak as operating cash flow was negative, leading to negative free cash flow after capital expenditure. The negative margin reflected that cash generation did not keep pace with revenue.
Compared to the prior quarter, operating cash flow and free cash flow both shifted from positive to negative, and margin turned negative. Relative to the same quarter a year earlier, operating cash flow and free cash flow remained negative but improved, and margin weakened less.
Monitor future operating cash flow trends as the current negative level diverges from the prior quarter's positive performance.