Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved versus both the prior quarter and the year-ago quarter, while capital expenditure rose relative to the year-ago period. Free cash flow remained negative but narrowed compared with the same quarter last year.
- Revenue was slightly higher than the prior quarter but lower than the year-ago quarter. Operating cash flow increased sequentially and year-over-year, yet capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative free cash flow margin.
- Compared with the prior quarter, revenue and operating cash flow were higher, but capital expenditure data for the prior quarter is missing. Versus the same quarter last year, revenue was lower while operating cash flow was higher; capital expenditure was higher, and free cash flow improved (less negative).
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$171.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$307.0M
Cash generated by operations before capital spending.
CapEx
$478.0M
Capital spending and related asset purchases.
FCF margin
-16.6%
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 | $912.0M | $123.0M | $341.0M | -$218.0M | -23.9% |
| 2023-09-30 | $1.1B | $311.0M | $443.0M | -$132.0M | -12.3% |
| 2023-12-31 | $961.0M | $245.0M | n/a | n/a | n/a |
| 2024-03-31 | $1.0B | $307.0M | $478.0M | -$171.0M | -16.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -108.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 46.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.3B | 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 Improvement
Operating cash flow increased compared with both the prior quarter and the year-ago quarter, providing more internal funding for capital spending.
Higher operating cash flow reduced the reliance on external financing for capital investments.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter but lower than the year-ago quarter. Operating cash flow increased sequentially and year-over-year, yet capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative free cash flow margin.
Compared with the prior quarter, revenue and operating cash flow were higher, but capital expenditure data for the prior quarter is missing. Versus the same quarter last year, revenue was lower while operating cash flow was higher; capital expenditure was higher, and free cash flow improved (less negative).
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap remained significant this quarter.