Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the same quarter last year but higher than the prior quarter. Free cash flow remained negative, though the deficit narrowed considerably from the previous quarter and slightly from a year ago.
- Operating cash flow was negative, and capital expenditure increased relative to both comparison periods, resulting in negative free cash flow and a free cash flow margin that was similar to a year ago but improved sequentially.
- Compared to the prior quarter, operating cash flow improved substantially, leading to a much smaller free cash outflow. Versus the same quarter a year earlier, revenue was lower and capital expenditure was higher, while free cash flow improved slightly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$7.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$723.0M
Cash generated by operations before capital spending.
CapEx
$738.0M
Capital spending and related asset purchases.
FCF margin
-27.8%
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 | $4.7B | -$192.0M | $676.0M | -$868.0M | -18.5% |
| 2023-09-30 | $5.3B | -$993.0M | $399.0M | -$1.4B | -26.2% |
| 2023-12-31 | $5.0B | -$3.2B | $687.0M | -$3.9B | -77.4% |
| 2024-03-31 | $5.3B | -$723.0M | $738.0M | -$1.5B | -27.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -165.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.0% | 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 improved significantly from the prior quarter, narrowing the gap between cash from operations and capital spending.
The improvement reduced the free cash flow deficit, but the company still reported negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and capital expenditure increased relative to both comparison periods, resulting in negative free cash flow and a free cash flow margin that was similar to a year ago but improved sequentially.
Compared to the prior quarter, operating cash flow improved substantially, leading to a much smaller free cash outflow. Versus the same quarter a year earlier, revenue was lower and capital expenditure was higher, while free cash flow improved slightly.
The filing discusses state program payments and pricing mechanisms, which are factors to monitor for their potential influence on future cash flows.