Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was positive but capital expenditure exceeded operating cash flow, resulting in negative free cash flow. Free cash flow margin improved compared to a year ago and the prior quarter.
- Revenue was higher than both comparison periods, and operating cash flow turned positive versus a year ago. However, capital expenditure remained substantial, causing free cash flow to stay negative even as the margin rose.
- Free cash flow and free cash flow margin were both higher than the immediately preceding quarter and the same quarter one year earlier. Operating cash flow improved substantially compared to the year-ago quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$869.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$236.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
-5.8%
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 | $4.0B | $802.0M | $1.4B | -$585.0M | -14.8% |
| 2023-09-30 | $4.7B | $1.8B | $1.3B | $554.0M | 11.8% |
| 2023-12-31 | $3.7B | $855.0M | $1.5B | -$602.0M | -16.2% |
| 2024-03-31 | $4.1B | $1.0B | $1.3B | -$236.0M | -5.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 2145.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$33.7B | 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 turnaround
Operating cash flow shifted from negative a year ago to positive this quarter, a key improvement. Revenue was higher than both the prior quarter and the year-ago quarter.
The improvement in operating cash flow led to a narrower free cash flow deficit and a higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both comparison periods, and operating cash flow turned positive versus a year ago. However, capital expenditure remained substantial, causing free cash flow to stay negative even as the margin rose.
Free cash flow and free cash flow margin were both higher than the immediately preceding quarter and the same quarter one year earlier. Operating cash flow improved substantially compared to the year-ago quarter.
Monitor capital expenditure trends relative to operating cash flow, as capital spending continued to exceed operating cash generation.