Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Operating cash flow declined from both periods, while capital expenditure remained stable, resulting in a more negative free cash flow and free cash flow margin.
- The company generated revenue of over four billion but operating cash flow was only a fraction of that, and with capital expenditure exceeding operating cash flow, free cash flow was deeply negative. This resulted in a free cash flow margin that weakened from the prior quarter and from a year ago.
- Compared to the prior quarter, operating cash flow was lower despite higher revenue, and free cash flow was more negative. Versus the same quarter last year, operating cash flow was also lower while revenue was higher, and free cash flow worsened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$329.0M
Cash generated by operations before capital spending.
CapEx
$1.4B
Capital spending and related asset purchases.
FCF margin
-25.2%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $4.3B | $329.0M | $1.4B | -$1.1B | -25.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -248.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 32.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$34.3B | 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 Weakness
The primary observable driver is a material decline in operating cash flow compared to the immediate prior quarter and the year-ago quarter, despite revenue growth. The filing context discusses capital programs and regulatory proceedings but does not specify a cause for the cash flow change.
The decline in operating cash flow has directly enlarged the negative free cash flow and reduced the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company generated revenue of over four billion but operating cash flow was only a fraction of that, and with capital expenditure exceeding operating cash flow, free cash flow was deeply negative. This resulted in a free cash flow margin that weakened from the prior quarter and from a year ago.
Compared to the prior quarter, operating cash flow was lower despite higher revenue, and free cash flow was more negative. Versus the same quarter last year, operating cash flow was also lower while revenue was higher, and free cash flow worsened.
Monitor the ratio of operating cash flow to capital expenditure, as capital expenditure has consistently exceeded operating cash flow across all comparison periods.