Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the preceding period, yet operating cash flow turned negative, resulting in a negative free cash flow margin. The cash conversion weakened compared to the prior period, while it was similar to the same period one year earlier.
- Revenue increased but operating cash flow was negative, producing a negative free cash flow. The free cash flow margin was negative, reflecting that cash conversion fell short of revenue generation.
- Compared with the immediately preceding period, operating cash flow and free cash flow shifted from positive to negative, and the margin declined. Versus the same period one year earlier, operating cash flow and free cash flow were similarly negative, while revenue data were not available for that prior period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$868.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$781.0M
Cash generated by operations before capital spending.
CapEx
$87.0M
Capital spending and related asset purchases.
FCF margin
-13.4%
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 | $5.9B | $1.5B | $101.0M | $1.4B | 23.5% |
| 2023-09-30 | $5.4B | $1.8B | $111.0M | $1.7B | 31.6% |
| 2023-12-31 | $5.6B | $1.8B | $120.0M | $1.7B | 29.9% |
| 2024-03-31 | $6.5B | -$781.0M | $87.0M | -$868.0M | -13.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -62.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.0B | 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 Swing
The most observable driver was the decline in operating cash flow from a positive level in the prior period to a negative level in the current period. Free cash flow followed the same pattern, and the margin turned negative.
This shift caused free cash flow to be negative despite higher revenue, creating a cash conversion gap.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased but operating cash flow was negative, producing a negative free cash flow. The free cash flow margin was negative, reflecting that cash conversion fell short of revenue generation.
Compared with the immediately preceding period, operating cash flow and free cash flow shifted from positive to negative, and the margin declined. Versus the same period one year earlier, operating cash flow and free cash flow were similarly negative, while revenue data were not available for that prior period.
Monitor the trajectory of operating cash flow in subsequent periods, as it switched from positive to negative.