Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the quarter as capital expenditure exceeded operating cash flow. The result was weaker than the same quarter last year and significantly below the prior quarter.
- Operating cash flow was not enough to cover capital expenditure, leading to a negative free cash flow. The free cash flow margin was negative, indicating cash outflow relative to revenue.
- Sequentially, revenue rose but operating cash flow fell sharply, turning free cash flow from positive to negative. Compared to the same quarter last year, revenue was lower, operating cash flow was slightly higher, but a larger increase in capital expenditure made free cash flow more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$696.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$28.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$172.0M
Cash generated by operations before capital spending.
CapEx
$200.0M
Capital spending and related asset purchases.
FCF margin
-2.7%
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 | $1.8B | $358.0M | $119.0M | $239.0M | 13.1% |
| 2023-09-30 | $2.0B | $454.0M | $171.0M | $283.0M | 14.2% |
| 2023-12-31 | $682.0M | $555.0M | $353.0M | $202.0M | 29.6% |
| 2024-03-31 | $1.1B | $172.0M | $200.0M | -$28.0M | -2.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -2.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.7B | 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 versus operating cash flow
Capital expenditure remained substantial while operating cash flow, though improved on a year-over-year basis, was still insufficient to fund the investment. The filing notes that operating cash flow is influenced by seasonal construction activity.
The shortfall led to negative free cash flow and continued reliance on other liquidity sources.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was not enough to cover capital expenditure, leading to a negative free cash flow. The free cash flow margin was negative, indicating cash outflow relative to revenue.
Sequentially, revenue rose but operating cash flow fell sharply, turning free cash flow from positive to negative. Compared to the same quarter last year, revenue was lower, operating cash flow was slightly higher, but a larger increase in capital expenditure made free cash flow more negative.
The gap between capital expenditure and operating cash flow should be monitored as it widened this quarter.