Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but comparable to the year-ago quarter, while free cash flow turned negative due to higher capital expenditure.
- Operating cash flow as a percentage of revenue weakened compared to the prior quarter, reflecting a lower conversion rate. The free cash flow margin turned negative, driven by capital expenditure that exceeded operating cash flow.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, leading to a weakened free cash flow position. Versus the same quarter one year earlier, revenue was higher and operating cash flow was slightly higher, while free cash flow improved from a negative position but remained negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$339.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$251.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$130.0M
Cash generated by operations before capital spending.
CapEx
$381.1M
Capital spending and related asset purchases.
FCF margin
-17.0%
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 | $1.4B | $317.3M | $334.9M | -$17.6M | -1.3% |
| 2023-09-30 | $1.4B | $220.3M | $361.5M | -$141.3M | -10.2% |
| 2023-12-31 | $1.4B | $447.2M | $376.9M | $70.3M | 4.9% |
| 2024-03-31 | $1.5B | $130.0M | $381.1M | -$251.1M | -17.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -326.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 25.8% | 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.
Capital Expenditure Increase
Capital expenditure rose compared to both the prior quarter and the year-ago quarter, significantly exceeding operating cash flow and resulting in negative free cash flow. The filing mentions a multi-year transformation program (Project Matterhorn) with annual costs, but no direct causation is attributed.
The elevated capital expenditure was the primary factor turning free cash flow negative this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue weakened compared to the prior quarter, reflecting a lower conversion rate. The free cash flow margin turned negative, driven by capital expenditure that exceeded operating cash flow.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, leading to a weakened free cash flow position. Versus the same quarter one year earlier, revenue was higher and operating cash flow was slightly higher, while free cash flow improved from a negative position but remained negative.
Monitor the trend in capital expenditure relative to operating cash flow, as the current quarter's elevated spending drove free cash flow negative.