Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but operating cash flow turned negative, resulting in a negative free cash flow margin. This contrasts with the positive cash generation observed a year earlier.
- Cash conversion weakened as operating cash flow was negative despite higher revenue, leading to a negative free cash flow margin. Capital expenditure was lower than the prior quarter, but the reduction was insufficient to offset the cash outflow from operations.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow was more negative, and free cash flow margin worsened. Versus the same quarter one year earlier, the company moved from positive free cash flow and margin to negative, with operating cash flow as the primary swing factor.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$340.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$316.7M
Cash generated by operations before capital spending.
CapEx
$23.7M
Capital spending and related asset purchases.
FCF margin
-3.7%
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 | $9.7B | $787.5M | $29.1M | $758.4M | 7.8% |
| 2023-09-30 | $10.5B | $2.0B | $40.3M | $2.0B | 19.1% |
| 2023-12-31 | $7.7B | -$153.4M | $47.6M | -$201.0M | -2.6% |
| 2024-03-31 | $9.1B | -$316.7M | $23.7M | -$340.4M | -3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -29.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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.
Shift in Operating Cash Flow
Operating cash flow moved from positive in the year-ago quarter to negative in the current quarter, despite higher revenue. This change was the primary factor behind the negative free cash flow and margin.
The negative free cash flow indicates that the company's operations consumed cash in this quarter rather than generating it.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as operating cash flow was negative despite higher revenue, leading to a negative free cash flow margin. Capital expenditure was lower than the prior quarter, but the reduction was insufficient to offset the cash outflow from operations.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow was more negative, and free cash flow margin worsened. Versus the same quarter one year earlier, the company moved from positive free cash flow and margin to negative, with operating cash flow as the primary swing factor.
Monitor the impact of interest rate changes on variable rate debt and the availability of mortgage financing, as these factors are identified in the filing as potential influences on future cash flows.