Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
First Solar's free cash flow turned negative in the first quarter, driven by capital expenditure exceeding operating cash flow. The result improved markedly from a severe deficit a year earlier but weakened compared to the prior quarter.
- Operating cash flow was positive and supported by higher revenue, yet capital expenditure absorbed that cash flow and more, producing a negative free cash flow and margin. Cash conversion was constrained by the level of investment spending.
- Compared to the prior quarter, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow shifted from positive to negative. Versus the same quarter last year, revenue and operating cash flow improved, the free cash flow deficit narrowed, and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$524.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$145.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$267.7M
Cash generated by operations before capital spending.
CapEx
$413.5M
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $810.7M | -$89.7M | $382.7M | -$472.4M | -58.3% |
| 2023-09-30 | $801.1M | $165.4M | $286.2M | -$120.8M | -15.1% |
| 2023-12-31 | $1.2B | $561.1M | $346.9M | $214.2M | 18.5% |
| 2024-03-31 | $794.1M | $267.7M | $413.5M | -$145.7M | -18.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -61.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 52.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Outpacing Operating Cash Flow
Capital expenditure was the primary observable factor that consumed operating cash flow and drove free cash flow negative this quarter. The company’s filing indicates it expects sufficient liquidity from cash, marketable securities, operating cash flows, and customer contracts to meet spending needs.
Sustained high capital spending could continue to pressure free cash flow unless operating cash flow expands.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive and supported by higher revenue, yet capital expenditure absorbed that cash flow and more, producing a negative free cash flow and margin. Cash conversion was constrained by the level of investment spending.
Compared to the prior quarter, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow shifted from positive to negative. Versus the same quarter last year, revenue and operating cash flow improved, the free cash flow deficit narrowed, and the margin strengthened.
Monitor whether capital expenditure remains at an elevated level relative to operating cash flow in upcoming quarters.