Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative and weakened compared to both the prior quarter and the same quarter last year. Operating cash flow turned negative, while capital expenditure decreased from the prior quarter but remained lower than a year ago.
- Revenue increased from the prior quarter and was higher than a year ago, yet operating cash flow turned negative, resulting in a negative free cash flow margin. The conversion from revenue to cash was significantly lower than both comparison periods.
- Compared to the prior quarter, revenue improved, operating cash flow was less negative, capital expenditure was lower, and free cash flow was less negative. Compared to the same quarter last year, revenue was higher, but operating cash flow shifted from positive to negative, capital expenditure was lower, and free cash flow turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$517.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$23.0M
Cash generated by operations before capital spending.
CapEx
$494.0M
Capital spending and related asset purchases.
FCF margin
-7.0%
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 | $6.5B | $616.0M | $842.0M | -$226.0M | -3.5% |
| 2023-12-31 | $6.8B | $425.0M | $708.0M | -$283.0M | -4.1% |
| 2024-03-31 | $6.3B | -$104.0M | $583.0M | -$687.0M | -10.9% |
| 2024-06-30 | $7.4B | -$23.0M | $494.0M | -$517.0M | -7.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -140.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | 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 turned negative
Operating cash flow was negative this quarter, a sharp reversal from the positive level a year ago. The filing notes that operating cash flows for the six-month period were largely impacted by bonus payments related to ratified labor contracts.
The negative operating cash flow directly drove the free cash flow deficit despite lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and was higher than a year ago, yet operating cash flow turned negative, resulting in a negative free cash flow margin. The conversion from revenue to cash was significantly lower than both comparison periods.
Compared to the prior quarter, revenue improved, operating cash flow was less negative, capital expenditure was lower, and free cash flow was less negative. Compared to the same quarter last year, revenue was higher, but operating cash flow shifted from positive to negative, capital expenditure was lower, and free cash flow turned from positive to negative.
Monitor whether operating cash flow can return to positive levels given the current revenue base.