Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's operating cash flow turned negative, resulting in negative free cash flow and a negative margin for the quarter. Compared to the prior quarter and the same quarter a year earlier, both revenue and cash conversion weakened significantly.
- Revenue was lower than the prior quarter but higher than the year-ago quarter. However, operating cash flow moved from positive to negative, driving free cash flow negative despite higher capital expenditure compared to both periods.
- Compared to the prior quarter, revenue was lower and operating cash flow weakened sharply from positive to negative, resulting in a much lower free cash flow and margin. Versus the year-ago quarter, revenue was higher but operating cash flow and free cash flow both turned negative, indicating a material deterioration.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$991.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$878.4M
Cash generated by operations before capital spending.
CapEx
$112.8M
Capital spending and related asset purchases.
FCF margin
-1.4%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $66.9B | $744.9M | $104.3M | $640.7M | 1.0% |
| 2023-09-30 | $68.9B | $1.8B | $175.5M | $1.7B | 2.4% |
| 2023-12-31 | $72.3B | $885.2M | $74.2M | $810.9M | 1.1% |
| 2024-03-31 | $68.4B | -$878.4M | $112.8M | -$991.2M | -1.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -235.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | 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
Operating cash flow moved from positive in both the prior quarter and the year-ago quarter to negative in the current quarter. This shift was the strongest observable factor, overwhelming the impact of higher revenue compared to a year ago and lower capital expenditure relative to the prior quarter.
The negative swing in operating cash flow caused free cash flow to turn deeply negative, reversing a positive trend from both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the year-ago quarter. However, operating cash flow moved from positive to negative, driving free cash flow negative despite higher capital expenditure compared to both periods.
Compared to the prior quarter, revenue was lower and operating cash flow weakened sharply from positive to negative, resulting in a much lower free cash flow and margin. Versus the year-ago quarter, revenue was higher but operating cash flow and free cash flow both turned negative, indicating a material deterioration.
Monitor whether operating cash flow can return to positive levels, as its reversal is the primary driver of the negative free cash flow.