Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year, but operating cash flow turned sharply negative, resulting in negative free cash flow and a weakened free cash flow margin. The cash conversion cycle deteriorated significantly as capital expenditure also rose.
- Despite higher revenue, operating cash flow plunged to a large negative figure, while capital expenditure increased, pushing free cash flow deeply negative. The free cash flow margin turned negative, indicating a significant cash conversion strain.
- Compared to the prior quarter, operating cash flow shifted from positive to negative, and free cash flow fell from positive to negative, while revenue was higher. Versus the same quarter last year, operating cash flow and free cash flow both weakened, and the free cash flow margin worsened, even though revenue increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$851.0M
Cash generated by operations before capital spending.
CapEx
$240.0M
Capital spending and related asset purchases.
FCF margin
-12.4%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $8.4B | $1.5B | $280.0M | $1.2B | 14.8% |
| 2023-12-31 | $8.5B | $1.5B | $519.0M | $940.0M | 11.0% |
| 2024-03-31 | $8.4B | $276.0M | $169.0M | $107.0M | 1.3% |
| 2024-06-30 | $8.8B | -$851.0M | $240.0M | -$1.1B | -12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -145.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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 Swing
The steep decline in operating cash flow from positive to negative is the strongest observable driver, overwhelming the revenue growth and leading to negative free cash flow.
This swing directly caused free cash flow to turn negative, reversing the positive free cash flow of the prior quarter and year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow plunged to a large negative figure, while capital expenditure increased, pushing free cash flow deeply negative. The free cash flow margin turned negative, indicating a significant cash conversion strain.
Compared to the prior quarter, operating cash flow shifted from positive to negative, and free cash flow fell from positive to negative, while revenue was higher. Versus the same quarter last year, operating cash flow and free cash flow both weakened, and the free cash flow margin worsened, even though revenue increased.
Monitor the trajectory of operating cash flow to see if it can return to positive territory in the coming quarters.