Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved versus the same quarter last year, but remained negative relative to revenue. Capital expenditure increased from the prior quarter, contributing to a negative free cash flow margin that narrowed compared to the immediately preceding quarter.
- Revenue rose from the prior quarter, yet operating cash flow declined, indicating a weaker cash conversion from sales. The combination of higher capital expenditure and lower operating cash flow resulted in a larger absolute free cash outflow, though the free cash flow margin improved slightly from the previous quarter.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower, while capital expenditure decreased and free cash flow improved. Versus the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was higher, and free cash flow improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$858.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$291.3M
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-25.7%
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 | $2.6B | $578.1M | $1.1B | -$484.2M | -18.4% |
| 2023-09-30 | $2.8B | $521.9M | $1.1B | -$564.2M | -20.2% |
| 2023-12-31 | $2.7B | $477.0M | $1.2B | -$734.2M | -27.3% |
| 2024-03-31 | $3.3B | $291.3M | $1.1B | -$858.1M | -25.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -163.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 34.5% | 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.
Capital Expenditure Pressure
Capital expenditure was higher than operating cash flow in the current quarter, a pattern also observed in both comparison periods. The filing references capital expenditure plans in the liquidity discussion, but does not provide specific causal details.
Sustained high capital expenditure relative to operating cash flow continues to pressure free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter, yet operating cash flow declined, indicating a weaker cash conversion from sales. The combination of higher capital expenditure and lower operating cash flow resulted in a larger absolute free cash outflow, though the free cash flow margin improved slightly from the previous quarter.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower, while capital expenditure decreased and free cash flow improved. Versus the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was higher, and free cash flow improved.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap between them remains substantial.