Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were lower than both the prior and year-ago quarters. Capital expenditure also decreased but free cash flow turned negative, resulting in a weakened overall cash conversion.
- Operating cash flow as a percentage of revenue improved from the year-ago quarter but declined from the prior quarter. The gap between operating cash flow and capital spending widened, leading to negative free cash flow.
- Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure was moderately lower; free cash flow shifted from positive to negative. Versus the same quarter last year, all metrics were lower, and free cash flow worsened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$212.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$93.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$209.0M
Cash generated by operations before capital spending.
CapEx
$302.0M
Capital spending and related asset purchases.
FCF margin
-18.4%
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 | $1.5B | $506.0M | $423.0M | $83.0M | 5.5% |
| 2023-12-31 | $1.9B | $470.0M | $379.0M | $91.0M | 4.7% |
| 2024-03-31 | $1.1B | $552.0M | $421.0M | $131.0M | 12.1% |
| 2024-06-30 | $505.0M | $209.0M | $302.0M | -$93.0M | -18.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 41.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 59.8% | 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 Decline
Operating cash flow decreased significantly from both the preceding and year-ago periods, while capital expenditure also declined but not enough to offset the cash flow shortfall.
The negative free cash flow indicates that operating cash flow did not cover capital expenditures.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved from the year-ago quarter but declined from the prior quarter. The gap between operating cash flow and capital spending widened, leading to negative free cash flow.
Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure was moderately lower; free cash flow shifted from positive to negative. Versus the same quarter last year, all metrics were lower, and free cash flow worsened.
Monitor whether operating cash flow can stabilize in the coming quarters as revenue levels adjust.