Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow turned negative, leading to a negative free cash flow and a weakened margin.
- Despite higher revenue, operating cash flow was negative, and capital expenditure increased, resulting in a negative free cash flow and a free cash flow margin that declined sharply from the prior quarter and the year-ago quarter.
- Operating cash flow, free cash flow, and margin all weakened significantly compared to the prior quarter and the same quarter last year. Revenue was higher than both comparable periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$667.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$163.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$29.8M
Cash generated by operations before capital spending.
CapEx
$133.8M
Capital spending and related asset purchases.
FCF margin
-5.2%
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 | $3.0B | $351.4M | $103.3M | $248.1M | 8.2% |
| 2023-09-30 | $3.1B | $275.5M | $104.9M | $170.6M | 5.6% |
| 2023-12-31 | $3.0B | $579.6M | $167.2M | $412.4M | 13.6% |
| 2024-03-31 | $3.2B | -$29.8M | $133.8M | -$163.6M | -5.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -71.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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 Decline
The strongest observable driver is the reversal of operating cash flow from positive in both the prior quarter and the year-ago quarter to negative in the current quarter.
This drove free cash flow from positive to negative, despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative, and capital expenditure increased, resulting in a negative free cash flow and a free cash flow margin that declined sharply from the prior quarter and the year-ago quarter.
Operating cash flow, free cash flow, and margin all weakened significantly compared to the prior quarter and the same quarter last year. Revenue was higher than both comparable periods.
The shift from positive to negative operating cash flow is a concrete item to monitor.