Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to the prior quarter but declined versus the same quarter one year earlier. Operating cash flow weakened sharply sequentially, leading to a negative free cash flow, though free cash flow improved from the year-ago period.
- Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow decreased significantly from the prior quarter and was slightly lower than the year-ago level. Capital expenditure was similar to the prior quarter but lower than a year ago. Free cash flow turned negative from a positive position in the prior quarter, while the margin weakened sequentially but improved compared to the same quarter last year.
- Compared to the prior quarter, revenue improved but operating cash flow and free cash flow weakened substantially. Versus the same quarter one year earlier, revenue was lower, operating cash flow was slightly lower, but free cash flow improved from a negative position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$981.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$19.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$99.0M
Cash generated by operations before capital spending.
CapEx
$118.0M
Capital spending and related asset purchases.
FCF margin
-0.7%
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 | $2.9B | $248.0M | $115.0M | $133.0M | 4.5% |
| 2023-09-30 | $2.8B | $420.0M | $100.0M | $320.0M | 11.3% |
| 2023-12-31 | $2.7B | $660.0M | $113.0M | $547.0M | 20.2% |
| 2024-03-31 | $2.9B | $99.0M | $118.0M | -$19.0M | -0.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -31.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sharp sequential decline in operating cash flow
The most notable driver was the significant drop in operating cash flow from the prior quarter, which reversed the free cash flow from positive to negative. This change was the primary factor in the weakened cash conversion.
The decline in operating cash flow was the strongest observable factor behind the negative free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow decreased significantly from the prior quarter and was slightly lower than the year-ago level. Capital expenditure was similar to the prior quarter but lower than a year ago. Free cash flow turned negative from a positive position in the prior quarter, while the margin weakened sequentially but improved compared to the same quarter last year.
Compared to the prior quarter, revenue improved but operating cash flow and free cash flow weakened substantially. Versus the same quarter one year earlier, revenue was lower, operating cash flow was slightly lower, but free cash flow improved from a negative position.
Monitor the level of capital expenditure relative to operating cash flow, as capital expenditure exceeded operating cash flow in the current quarter.