Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow more than covered capital expenditure, yet free cash flow remained negative as investment outlays exceeded cash from operations. Revenue declined from the preceding quarter while operating cash flow improved, leading to a narrower free cash flow deficit compared to both the prior quarter and the same quarter last year.
- Revenue was lower than the prior quarter, while operating cash flow was higher, indicating an improved cash conversion rate. Capital expenditure was slightly reduced from both comparison periods, and the resulting free cash flow margin, though negative, was significantly less negative than in the preceding quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow was higher (less negative). Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher (less negative).
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$237.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$1.7B
Capital spending and related asset purchases.
FCF margin
-4.4%
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 | $6.0B | $1.5B | $1.9B | -$324.0M | -5.4% |
| 2023-12-31 | $5.4B | $1.4B | $1.9B | -$457.0M | -8.5% |
| 2024-03-31 | $6.0B | $992.0M | $1.8B | -$775.0M | -12.8% |
| 2024-06-30 | $5.4B | $1.5B | $1.7B | -$237.0M | -4.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -52.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.7% | 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.
Operating cash flow improvement
Operating cash flow rose compared to both the prior quarter and the year-ago quarter, despite revenue being lower than the prior quarter. This improvement was the primary factor behind the reduction in the free cash flow deficit.
The stronger operating cash flow directly reduced the negative free cash flow and improved the 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 prior quarter, while operating cash flow was higher, indicating an improved cash conversion rate. Capital expenditure was slightly reduced from both comparison periods, and the resulting free cash flow margin, though negative, was significantly less negative than in the preceding quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow was higher (less negative). Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher (less negative).
Monitor whether operating cash flow can sustain its improvement while capital expenditure remains elevated, which will determine the trajectory of free cash flow.