Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and slightly lower than a year ago. Free cash flow turned negative as operating cash flow declined while capital expenditure remained elevated.
- Operating cash flow as a proportion of revenue weakened compared to both the prior quarter and the same quarter last year, while capital expenditure consumed a larger share of operating cash flow, resulting in a negative free cash flow margin.
- Compared to the immediately preceding quarter, operating cash flow was lower and capital expenditure was lower, but free cash flow shifted from near break-even to negative. Versus the same quarter one year earlier, operating cash flow was lower, capital expenditure was higher, and free cash flow declined from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$165.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$109.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$598.0M
Cash generated by operations before capital spending.
CapEx
$707.0M
Capital spending and related asset purchases.
FCF margin
-5.1%
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 | $2.0B | $741.0M | $638.0M | $103.0M | 5.1% |
| 2023-09-30 | $2.1B | $785.0M | $617.0M | $168.0M | 8.2% |
| 2023-12-31 | $2.1B | $999.0M | $996.0M | $3.0M | 0.1% |
| 2024-03-31 | $2.1B | $598.0M | $707.0M | -$109.0M | -5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -47.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 33.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure outpacing operating cash flow
Capital expenditure remained substantial while operating cash flow declined from both the prior quarter and the year-ago period, causing free cash flow to turn negative.
The combination of lower operating cash flow and sustained capital expenditure was the strongest observable driver of the negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue weakened compared to both the prior quarter and the same quarter last year, while capital expenditure consumed a larger share of operating cash flow, resulting in a negative free cash flow margin.
Compared to the immediately preceding quarter, operating cash flow was lower and capital expenditure was lower, but free cash flow shifted from near break-even to negative. Versus the same quarter one year earlier, operating cash flow was lower, capital expenditure was higher, and free cash flow declined from positive to negative.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap widened and drove free cash flow negative.