Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable year over year but declined sequentially, while operating cash flow weakened from the prior year and improved slightly from the previous quarter. Free cash flow remained deeply negative, though the margin improved significantly compared to the same quarter last year.
- Revenue held flat year over year, but operating cash flow was lower, leading to a higher negative free cash flow margin. Capital expenditure decreased year over year, which helped narrow the free cash flow deficit despite the weaker cash conversion from revenue.
- Compared to the preceding quarter, revenue was lower, operating cash flow was slightly higher, and capital expenditure was lower, resulting in a less negative free cash flow. Year over year, revenue was stable, operating cash flow was lower, capital expenditure was lower, and free cash flow improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$236.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$576.0M
Cash generated by operations before capital spending.
CapEx
$812.0M
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 | $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% |
| 2024-06-30 | $1.9B | $576.0M | $812.0M | -$236.0M | -12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -103.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 42.6% | 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.
Capital Expenditure Level
Capital expenditure remained very high in absolute terms, though lower than both the prior year and the preceding quarter. This continues to be the primary factor driving negative free cash flow, as operating cash flow is insufficient to cover the investment outlay.
Sustained high capital expenditure, even if reduced year over year, keeps free cash flow deeply negative until operating cash flow growth materially outpaces spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue held flat year over year, but operating cash flow was lower, leading to a higher negative free cash flow margin. Capital expenditure decreased year over year, which helped narrow the free cash flow deficit despite the weaker cash conversion from revenue.
Compared to the preceding quarter, revenue was lower, operating cash flow was slightly higher, and capital expenditure was lower, resulting in a less negative free cash flow. Year over year, revenue was stable, operating cash flow was lower, capital expenditure was lower, and free cash flow improved.
Monitor whether operating cash flow can sustain its sequential improvement while capital expenditure remains elevated, as the gap between them continues to pressure free cash flow.