Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved significantly from the prior quarter as operating cash flow rose, though free cash flow remained negative due to capital expenditure exceeding operating cash flow. Revenue was stable compared to both the prior quarter and the same quarter a year ago.
- Revenue was unchanged quarter over quarter, but operating cash flow increased substantially, narrowing the free cash flow deficit. Free cash flow margin improved from the prior quarter and was comparable to the year-ago level, as capital expenditure rose relative to operating cash flow.
- Compared to the prior quarter, operating cash flow was higher and free cash flow was less negative, with a similar capital expenditure level. Relative to the same quarter a year ago, revenue was higher, operating cash flow was higher, and capital expenditure was higher, resulting in a slightly more negative free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$336.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$14.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$382.2M
Cash generated by operations before capital spending.
CapEx
$396.8M
Capital spending and related asset purchases.
FCF margin
-1.0%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $1.5B | $382.2M | $396.8M | -$14.6M | -1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -42.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 25.9% | 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.
Operating cash flow recovery
Operating cash flow in the current quarter was higher than both the prior quarter and the year-ago quarter, driving an improvement in cash conversion. This was the strongest observable change among the financial metrics.
The higher operating cash flow reduced the free cash flow deficit considerably compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged quarter over quarter, but operating cash flow increased substantially, narrowing the free cash flow deficit. Free cash flow margin improved from the prior quarter and was comparable to the year-ago level, as capital expenditure rose relative to operating cash flow.
Compared to the prior quarter, operating cash flow was higher and free cash flow was less negative, with a similar capital expenditure level. Relative to the same quarter a year ago, revenue was higher, operating cash flow was higher, and capital expenditure was higher, resulting in a slightly more negative free cash flow.
Monitor the trend in operating cash flow given the prior quarter's low level and the current quarter's recovery.