Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative this quarter, driven by operating cash flow that was lower than capital expenditure. Revenue improved from the prior quarter but declined compared to the same quarter last year.
- Operating cash flow was insufficient to cover capital expenditure, resulting in a negative free cash flow margin. The margin weakened compared to the same quarter last year but improved from the prior quarter.
- Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow improved. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$970.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$133.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$456.2M
Cash generated by operations before capital spending.
CapEx
$589.5M
Capital spending and related asset purchases.
FCF margin
-8.1%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $1.1B | $507.6M | $604.8M | -$97.2M | -9.1% |
| 2023-09-30 | $1.0B | $344.9M | $723.7M | -$378.8M | -37.8% |
| 2023-12-31 | $1.4B | $399.2M | $760.2M | -$361.0M | -26.1% |
| 2024-03-31 | $1.6B | $456.2M | $589.5M | -$133.3M | -8.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -36.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 35.9% | 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.
Capital expenditure outpacing operating cash flow
Capital expenditure remained higher than operating cash flow, sustaining negative free cash flow. The gap narrowed from the prior quarter but widened compared to the same quarter last year.
This driver directly caused free cash flow to remain negative for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was insufficient to cover capital expenditure, resulting in a negative free cash flow margin. The margin weakened compared to the same quarter last year but improved from the prior quarter.
Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow improved. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher.
Monitor the relationship between operating cash flow and capital expenditure, as free cash flow remained negative despite improved operating cash flow.