Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow turned negative as operating cash flow declined more sharply than revenue, while capital expenditure increased slightly. Compared with the preceding quarter, cash conversion weakened significantly, and the free cash flow margin was lower than both the prior quarter and the same quarter a year earlier.
- Revenue was lower than the preceding quarter but higher than the same quarter a year earlier. Operating cash flow, however, was lower than both periods, resulting in a negative free cash flow and a free cash flow margin that was lower than both comparable periods.
- Compared with the preceding quarter, revenue, operating cash flow, and free cash flow all decreased, while capital expenditure increased. Compared with the same quarter a year earlier, revenue improved, but operating cash flow and free cash flow weakened, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$426.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$236.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$322.0M
Cash generated by operations before capital spending.
CapEx
$558.2M
Capital spending and related asset purchases.
FCF margin
-24.8%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $1.2B | $454.6M | $504.1M | -$49.5M | -4.2% |
| 2023-12-31 | $2.0B | $624.4M | $533.1M | $91.2M | 4.5% |
| 2024-03-31 | $1.4B | $1.2B | $534.5M | $621.2M | 44.0% |
| 2024-06-30 | $952.5M | $322.0M | $558.2M | -$236.1M | -24.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -2481.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 58.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash conversion from revenue
Operating cash flow declined more sharply than revenue, leading to a negative free cash flow despite a modest increase in capital expenditure. This weakened cash conversion was the strongest observable driver of the quarter's performance.
The weakened cash conversion was the primary factor behind the negative free cash flow and the lower free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter but higher than the same quarter a year earlier. Operating cash flow, however, was lower than both periods, resulting in a negative free cash flow and a free cash flow margin that was lower than both comparable periods.
Compared with the preceding quarter, revenue, operating cash flow, and free cash flow all decreased, while capital expenditure increased. Compared with the same quarter a year earlier, revenue improved, but operating cash flow and free cash flow weakened, and capital expenditure was higher.
Monitor the relationship between operating cash flow and revenue, as the current quarter's cash conversion was notably lower than in prior periods.