Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion was deeply negative as operating cash outflows far exceeded capital spending, yielding a large negative free cash flow. Revenue was higher than the prior quarter but lower year-over-year, with free cash flow margin improving compared to a year ago but weakening sharply from the previous quarter.
- Operating cash flow was negative and capital expenditure was positive, so free cash flow was also negative. Free cash flow margin was negative, reflecting that cash conversion from revenue was unfavorable in this quarter.
- Revenue was higher than the immediate prior quarter but lower than the same quarter one year earlier. Operating cash flow and free cash flow were negative this quarter, while they were positive in the prior quarter; compared with a year earlier, both the cash flow deficits and the negative margin were smaller, indicating an improved but still negative position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$2.6B
Cash generated by operations before capital spending.
CapEx
$148.0M
Capital spending and related asset purchases.
FCF margin
-61.4%
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 | $6.0B | $812.0M | $99.0M | $713.0M | 11.8% |
| 2023-09-30 | $2.6B | -$105.0M | $162.0M | -$267.0M | -10.3% |
| 2023-12-31 | $3.7B | $4.4B | $183.0M | $4.2B | 113.0% |
| 2024-03-31 | $4.5B | -$2.6B | $148.0M | -$2.8B | -61.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -651.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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 most observable driver is the reversal of operating cash flow from a large positive in the prior quarter to a large negative this quarter, which directly drove free cash flow to a large negative. No explanation for this swing is provided in the filing context.
This large sequential swing in operating cash flow had a direct and material impact on free cash flow, turning it deeply negative.
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 was positive, so free cash flow was also negative. Free cash flow margin was negative, reflecting that cash conversion from revenue was unfavorable in this quarter.
Revenue was higher than the immediate prior quarter but lower than the same quarter one year earlier. Operating cash flow and free cash flow were negative this quarter, while they were positive in the prior quarter; compared with a year earlier, both the cash flow deficits and the negative margin were smaller, indicating an improved but still negative position.
Monitor whether operating cash flow can turn positive in the next quarter, as the sequential swing from positive to negative was large.