Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned positive as operating cash flow improved significantly from the prior quarter and the same quarter last year, while capital expenditure increased. The free cash flow margin also moved from negative to positive territory.
- Revenue remained stable compared to the prior quarter, but operating cash flow shifted from negative to positive, resulting in positive free cash flow after capital expenditure. This represents a substantial improvement in cash conversion efficiency.
- Compared to the immediately preceding quarter and the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin all improved from negative to positive. Capital expenditure was higher than both prior periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$998.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$170.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$942.0M
Capital spending and related asset purchases.
FCF margin
5.2%
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 | $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% |
| 2024-06-30 | $3.3B | $1.1B | $942.0M | $170.0M | 5.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 548.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 28.7% | 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 recovery
Operating cash flow turned from negative in the prior quarter and year-ago quarter to positive in the current quarter, driving the free cash flow to positive.
This recovery was the primary factor behind the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable compared to the prior quarter, but operating cash flow shifted from negative to positive, resulting in positive free cash flow after capital expenditure. This represents a substantial improvement in cash conversion efficiency.
Compared to the immediately preceding quarter and the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin all improved from negative to positive. Capital expenditure was higher than both prior periods.
Monitor the trend of operating cash flow to ensure it remains positive, given it was negative in the two previous comparable periods.