Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher versus the prior quarter but lower than the same quarter last year. Operating cash flow declined sequentially and from a year ago, resulting in a negative free cash flow and a weaker free cash flow margin.
- Operating cash flow as a percentage of revenue declined significantly compared with both the preceding quarter and the same quarter one year earlier, while capital expenditure remained at elevated levels. This combination drove a negative free cash flow and a weakened free cash flow margin.
- Free cash flow worsened in the current quarter compared with the immediately preceding quarter, and was significantly weaker versus the same quarter one year earlier when free cash flow was positive. The free cash flow margin improved slightly from the prior quarter but declined sharply from a year ago.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$307.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$538.0M
Cash generated by operations before capital spending.
CapEx
$845.0M
Capital spending and related asset purchases.
FCF margin
-11.8%
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 | $1.9B | $769.0M | $1.1B | -$367.0M | -19.6% |
| 2023-09-30 | $1.9B | $587.0M | $1.1B | -$477.0M | -25.6% |
| 2023-12-31 | $2.1B | $808.0M | $1.1B | -$270.0M | -12.8% |
| 2024-03-31 | $2.6B | $538.0M | $845.0M | -$307.0M | -11.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -87.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 32.6% | 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 decline
Operating cash flow was lower than both the prior quarter and the same quarter last year, despite revenue being higher than the prior quarter. This was the strongest observable factor contributing to the negative free cash flow.
The lower operating cash flow, combined with sustained high capital expenditure, kept free cash flow negative and the free cash flow margin in negative territory.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue declined significantly compared with both the preceding quarter and the same quarter one year earlier, while capital expenditure remained at elevated levels. This combination drove a negative free cash flow and a weakened free cash flow margin.
Free cash flow worsened in the current quarter compared with the immediately preceding quarter, and was significantly weaker versus the same quarter one year earlier when free cash flow was positive. The free cash flow margin improved slightly from the prior quarter but declined sharply from a year ago.
Monitor whether operating cash flow can improve in upcoming quarters, as it was the primary factor behind the negative free cash flow.