Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter after being positive in the prior quarter. Operating cash flow declined while capital expenditure remained relatively stable.
- Revenue declined slightly from the prior quarter while operating cash flow fell by a larger proportion, resulting in a lower free cash flow margin. Capital expenditure was nearly unchanged, so the cash conversion weakness was driven entirely by lower operating cash flow.
- Compared to the prior quarter, operating cash flow and free cash flow both declined, shifting free cash flow from positive to negative. Versus the same quarter a year earlier, revenue was lower but operating cash flow also declined less sharply; capital expenditure decreased substantially, resulting in a less negative free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$149.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$57.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$276.2M
Cash generated by operations before capital spending.
CapEx
$333.7M
Capital spending and related asset purchases.
FCF margin
-1.5%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $4.2B | $411.1M | $567.2M | -$156.1M | -3.7% |
| 2024-03-31 | $4.0B | $451.3M | $519.6M | -$68.4M | -1.7% |
| 2024-06-30 | $4.0B | $479.7M | $347.3M | $132.4M | 3.3% |
| 2024-09-30 | $3.9B | $276.2M | $333.7M | -$57.5M | -1.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 40.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.6% | 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.
Operating cash flow decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while revenue also decreased. This was the primary observable factor behind the weak free cash flow.
Lower operating cash flow was the strongest driver of the negative free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined slightly from the prior quarter while operating cash flow fell by a larger proportion, resulting in a lower free cash flow margin. Capital expenditure was nearly unchanged, so the cash conversion weakness was driven entirely by lower operating cash flow.
Compared to the prior quarter, operating cash flow and free cash flow both declined, shifting free cash flow from positive to negative. Versus the same quarter a year earlier, revenue was lower but operating cash flow also declined less sharply; capital expenditure decreased substantially, resulting in a less negative free cash flow.
Monitor operating cash flow trends given its sharp decline from the prior quarter.