Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter, revenue was higher than the preceding quarter but lower than the same quarter one year earlier, while operating cash flow remained negative and deepened. Free cash flow was also negative and larger than both prior periods, with a margin that improved from the preceding quarter but weakened compared to a year ago.
- Cash conversion remained negative, with operating cash flow and free cash flow both in deficit. Revenue was insufficient to cover capital expenditure and operating outflows, producing a negative free cash flow margin.
- Compared to the preceding quarter, revenue improved and capital expenditure was slightly lower, but operating cash flow and free cash flow both worsened. Versus the same quarter one year earlier, revenue was lower, operating cash flow and free cash flow were more negative, although capital expenditure was reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.3B
Cash generated by operations before capital spending.
CapEx
$182.0M
Capital spending and related asset purchases.
FCF margin
-604.1%
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 | $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% |
| 2024-06-30 | $241.0M | -$1.3B | $182.0M | -$1.5B | -604.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 75.5% | 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 deficit
Operating cash flow was negative and larger than both the preceding quarter and the same quarter one year earlier. This deficit was the primary factor driving free cash flow deeper into negative territory.
The continued operating cash outflow, despite higher revenue than the prior quarter, indicates that cost structure and net cash generation remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion remained negative, with operating cash flow and free cash flow both in deficit. Revenue was insufficient to cover capital expenditure and operating outflows, producing a negative free cash flow margin.
Compared to the preceding quarter, revenue improved and capital expenditure was slightly lower, but operating cash flow and free cash flow both worsened. Versus the same quarter one year earlier, revenue was lower, operating cash flow and free cash flow were more negative, although capital expenditure was reduced.
Monitor the trend in cash, cash equivalents, and investments, which decreased from the end of the prior fiscal year, as disclosed in the quarterly report.