Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than a year earlier, but operating cash flow turned sharply negative, resulting in a negative free cash flow margin. The decline was driven by a large outflow from working capital changes, as detailed in the filing.
- Operating cash flow was negative despite stable revenue, while capital expenditure was slightly lower than the prior quarter but similar to the year-ago period. The combination produced a negative free cash flow and a negative margin, a sharp reversal from positive levels in both comparison periods.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow weakened from positive to negative, while revenue was essentially unchanged. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow both deteriorated significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$920.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$255.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$134.8M
Cash generated by operations before capital spending.
CapEx
$121.0M
Capital spending and related asset purchases.
FCF margin
-8.3%
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 | $3.0B | $450.1M | $124.5M | $325.6M | 10.9% |
| 2023-09-30 | $3.1B | $661.2M | $136.8M | $524.4M | 16.8% |
| 2023-12-31 | $3.1B | $485.2M | $159.0M | $326.2M | 10.4% |
| 2024-03-31 | $3.1B | -$134.8M | $121.0M | -$255.9M | -8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -106.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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.
Working capital swing
The filing shows that net cash provided by operating activities turned negative primarily due to a large outflow from other working capital changes, which more than offset higher net income and non-cash items.
This working capital swing reversed free cash flow from positive to negative, making it the strongest observable driver of the quarter's cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative despite stable revenue, while capital expenditure was slightly lower than the prior quarter but similar to the year-ago period. The combination produced a negative free cash flow and a negative margin, a sharp reversal from positive levels in both comparison periods.
Compared to the immediately preceding quarter, operating cash flow and free cash flow weakened from positive to negative, while revenue was essentially unchanged. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow both deteriorated significantly.
Monitor the magnitude and direction of working capital changes in upcoming quarters, as they were the primary factor behind the negative operating cash flow.