Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative this quarter, driven by negative operating cash flow. Revenue declined from the prior quarter but increased compared to the same quarter last year, while the free cash flow margin weakened significantly.
- Revenue was lower than the prior quarter but higher than a year earlier. Operating cash flow was negative, and capital expenditure was higher than both comparison periods, resulting in a negative free cash flow and a weakened margin.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both turned from positive to negative, and the free cash flow margin declined sharply. Versus the same quarter one year earlier, operating cash flow and free cash flow were more negative, and the margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$470.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$274.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$202.0M
Cash generated by operations before capital spending.
CapEx
$72.0M
Capital spending and related asset purchases.
FCF margin
-9.8%
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 | $2.8B | $82.0M | $68.0M | $14.0M | 0.5% |
| 2023-09-30 | $2.8B | $335.0M | $53.0M | $282.0M | 10.0% |
| 2023-12-31 | $3.2B | $562.0M | $114.0M | $448.0M | 14.1% |
| 2024-03-31 | $2.8B | -$202.0M | $72.0M | -$274.0M | -9.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -179.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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.
Trade Working Capital Increase
The company's operating cash flow was negatively affected by a substantial increase in trade working capital, as noted in the liquidity discussion.
This use of cash contributed to the negative free cash flow and weakened margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year earlier. Operating cash flow was negative, and capital expenditure was higher than both comparison periods, resulting in a negative free cash flow and a weakened margin.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both turned from positive to negative, and the free cash flow margin declined sharply. Versus the same quarter one year earlier, operating cash flow and free cash flow were more negative, and the margin was lower.
Monitor changes in trade working capital, which was a significant use of cash in the current quarter according to the filing.