Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sequentially while revenue declined, and capital expenditure remained stable. Free cash flow was negative but less negative than the prior quarter and a year ago.
- Revenue was lower than the prior quarter and slightly lower than a year earlier. Operating cash flow was higher than both the previous quarter and the same quarter last year, while capital expenditure was stable across all periods. The resulting free cash flow was negative but less negative than the prior quarter and a year ago, and the free cash flow margin also improved, though remained negative.
- Compared with the immediately preceding quarter, revenue was lower but operating cash flow was higher, leading to a less negative free cash flow. Compared with the same quarter one year earlier, revenue was slightly lower while operating cash flow was higher, resulting in an improved free cash flow margin.
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
-$400.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$670.7M
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-15.8%
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 | $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% |
| 2024-06-30 | $2.5B | $670.7M | $1.1B | -$400.8M | -15.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -118.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 42.3% | 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.
Higher operating cash flow
Operating cash flow was higher than both the prior quarter and the year-ago period, even as revenue was lower. This was the strongest observable driver of the improvement in free cash flow.
The higher operating cash flow narrowed the negative free cash flow despite stable capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter and slightly lower than a year earlier. Operating cash flow was higher than both the previous quarter and the same quarter last year, while capital expenditure was stable across all periods. The resulting free cash flow was negative but less negative than the prior quarter and a year ago, and the free cash flow margin also improved, though remained negative.
Compared with the immediately preceding quarter, revenue was lower but operating cash flow was higher, leading to a less negative free cash flow. Compared with the same quarter one year earlier, revenue was slightly lower while operating cash flow was higher, resulting in an improved free cash flow margin.
Monitor the trend in revenue, which declined sequentially and year over year, given its relationship with cash conversion.