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 remained negative with a negative margin, as operating cash flow turned negative despite higher revenue. The free cash flow worsened both sequentially and compared to the same quarter last year.
- Revenue increased versus the prior quarter and the year-ago quarter, but operating cash flow shifted from positive in the prior quarter to negative, and was less negative than a year ago. Higher capital expenditure relative to the year-ago quarter, combined with negative operating cash flow, led to a larger free cash flow deficit and a more negative margin sequentially.
- Compared to the prior quarter, free cash flow and margin weakened sharply as operating cash flow dropped from positive to negative. Versus the same quarter last year, free cash flow and margin also weakened, though operating cash flow improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$830.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$40.0M
Cash generated by operations before capital spending.
CapEx
$790.0M
Capital spending and related asset purchases.
FCF margin
-25.3%
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 | $3.0B | -$101.0M | $769.0M | -$870.0M | -28.9% |
| 2023-09-30 | $3.5B | $642.0M | $848.0M | -$206.0M | -5.9% |
| 2023-12-31 | $3.1B | $958.0M | $1.1B | -$132.0M | -4.2% |
| 2024-03-31 | $3.3B | -$40.0M | $790.0M | -$830.0M | -25.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -310.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.0% | 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 Turned Negative
Operating cash flow swung from a positive level in the prior quarter to a negative figure in the current quarter, even as revenue increased. This shift was the primary factor behind the weakened free cash flow.
The negative operating cash flow, together with ongoing capital expenditure, drove free cash flow deeper into deficit both sequentially and year over year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased versus the prior quarter and the year-ago quarter, but operating cash flow shifted from positive in the prior quarter to negative, and was less negative than a year ago. Higher capital expenditure relative to the year-ago quarter, combined with negative operating cash flow, led to a larger free cash flow deficit and a more negative margin sequentially.
Compared to the prior quarter, free cash flow and margin weakened sharply as operating cash flow dropped from positive to negative. Versus the same quarter last year, free cash flow and margin also weakened, though operating cash flow improved.
Monitor whether operating cash flow can return to positive territory in upcoming quarters.