Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue dropped sharply compared to both the prior quarter and the same quarter last year, resulting in deeply negative free cash flow and margin. Operating cash outflow narrowed from a year ago but remained substantial.
- Low revenue combined with negative operating cash flow and elevated capital expenditure produced a large negative free cash flow. The free cash flow margin turned deeply negative as the denominator contracted.
- Compared to the prior quarter, revenue fell and operating cash flow flipped from positive to negative, driving free cash flow from positive to a significant deficit. Versus the same quarter a year earlier, revenue declined but operating cash outflow improved, and free cash flow deficit narrowed modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$989.0M
Cash generated by operations before capital spending.
CapEx
$196.0M
Capital spending and related asset purchases.
FCF margin
-709.6%
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 | $344.0M | -$915.0M | $234.0M | -$1.1B | -334.0% |
| 2023-09-30 | $1.8B | -$1.6B | $140.0M | -$1.7B | -95.0% |
| 2023-12-31 | $2.8B | $622.0M | $220.0M | $402.0M | 14.3% |
| 2024-03-31 | $167.0M | -$989.0M | $196.0M | -$1.2B | -709.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 117.4% | 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.
Revenue contraction
The sharp decline in revenue was the most visible factor driving the deterioration in free cash flow, even as the operating cash outflow improved relative to the year-ago period.
Without a recovery in revenue, sustained negative operating cash flow may pressure liquidity.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Low revenue combined with negative operating cash flow and elevated capital expenditure produced a large negative free cash flow. The free cash flow margin turned deeply negative as the denominator contracted.
Compared to the prior quarter, revenue fell and operating cash flow flipped from positive to negative, driving free cash flow from positive to a significant deficit. Versus the same quarter a year earlier, revenue declined but operating cash outflow improved, and free cash flow deficit narrowed modestly.
Track cash and investment balances, which the filing noted decreased primarily due to operating cash outflows and capital expenditures.