Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. However, operating cash flow turned negative, resulting in a larger free cash flow deficit and a weakened free cash flow margin.
- Operating cash flow dropped sharply from positive to negative despite stable revenue, while capital expenditure decreased relative to the prior quarter. The combination produced negative free cash flow and a negative margin.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both worsened from positive to negative, and free cash flow margin declined. Versus the same quarter one year earlier, free cash flow and margin were lower, though operating cash flow was similarly negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$524.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$183.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$119.0M
Cash generated by operations before capital spending.
CapEx
$64.0M
Capital spending and related asset purchases.
FCF margin
-3.8%
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 | $4.8B | -$67.0M | $70.0M | -$137.0M | -2.8% |
| 2023-09-30 | $4.8B | $650.0M | $80.0M | $570.0M | 11.8% |
| 2024-03-31 | $4.7B | $419.0M | $145.0M | $274.0M | 5.9% |
| 2024-06-30 | $4.8B | -$119.0M | $64.0M | -$183.0M | -3.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -42.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.2B | 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 Reversal
Operating cash flow shifted from a positive level in the prior quarter to a negative amount this quarter, while revenue barely changed. This swing overwhelmed the reduction in capital expenditure and drove free cash flow deeper into negative territory.
The negative free cash flow and margin signal a weakened cash generation ability relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow dropped sharply from positive to negative despite stable revenue, while capital expenditure decreased relative to the prior quarter. The combination produced negative free cash flow and a negative margin.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both worsened from positive to negative, and free cash flow margin declined. Versus the same quarter one year earlier, free cash flow and margin were lower, though operating cash flow was similarly negative.
Monitor operating cash flow direction, as its swing to negative is the primary factor behind the free cash flow deficit.