Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, the company generated negative free cash flow as operating cash flow turned negative while capital expenditure remained elevated. Revenue declined compared to both the prior quarter and the same quarter a year earlier, and free cash flow margin weakened significantly.
- Revenue fell, operating cash flow turned negative, and capital expenditure was higher than the year-ago level, resulting in a worsened free cash flow and a negative margin. The cash conversion was weak as operating cash outflow exceeded revenue generation.
- Compared to the prior quarter, revenue and operating cash flow both declined, with free cash flow flipping from positive to negative. Versus the same quarter a year earlier, revenue was lower, operating cash flow moved from positive to negative, and free cash flow became more negative, though capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$714.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$463.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$80.0M
Cash generated by operations before capital spending.
CapEx
$383.0M
Capital spending and related asset purchases.
FCF margin
-17.3%
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 | $3.4B | $1.1B | $310.3M | $762.4M | 22.5% |
| 2023-09-30 | $3.5B | $647.4M | $411.7M | $235.7M | 6.6% |
| 2023-12-31 | $3.1B | $538.1M | $358.9M | $179.2M | 5.7% |
| 2024-03-31 | $2.7B | -$80.0M | $383.0M | -$463.0M | -17.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1024.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.3% | 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
The strongest observable driver was the shift in operating cash flow from a positive contribution in the prior and year-ago quarters to a sizable outflow in the current quarter. This change alone accounted for the deterioration in free cash flow.
The negative operating cash flow more than offset any reduction in capital spending, causing free cash flow to fall well below both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue fell, operating cash flow turned negative, and capital expenditure was higher than the year-ago level, resulting in a worsened free cash flow and a negative margin. The cash conversion was weak as operating cash outflow exceeded revenue generation.
Compared to the prior quarter, revenue and operating cash flow both declined, with free cash flow flipping from positive to negative. Versus the same quarter a year earlier, revenue was lower, operating cash flow moved from positive to negative, and free cash flow became more negative, though capital expenditure was higher.
Monitor the trajectory of operating cash flow, as it turned negative and may reflect seasonal patterns mentioned in the company's filing.