Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow decreased relative to the prior quarter and the year-ago quarter, while capital expenditure increased, resulting in a more negative free cash flow and a weakened free cash flow margin. Revenue was stable compared to the same quarter last year but lower than the previous quarter.
- Revenue was unchanged from a year ago but lower than the prior quarter. Operating cash flow declined compared to both periods, while capital expenditure rose, pushing free cash flow further negative and compressing the margin.
- Compared to the preceding quarter, revenue was lower and free cash flow was more negative with a weaker margin. Versus the same quarter last year, revenue was similar but free cash flow worsened as operating cash flow fell and capital expenditure rose.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$184.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$445.5M
Cash generated by operations before capital spending.
CapEx
$629.8M
Capital spending and related asset purchases.
FCF margin
-17.5%
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 | $1.0B | $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% |
| 2024-06-30 | $1.1B | $445.5M | $629.8M | -$184.3M | -17.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -214.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 59.7% | 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 versus operating cash flow
Capital expenditure was higher than both the prior quarter and the year-ago quarter, while operating cash flow was lower. This combination drove the more negative free cash flow and lower margin.
If the trend continues, free cash flow may remain under pressure unless operating cash flow improves or capital expenditure moderates.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from a year ago but lower than the prior quarter. Operating cash flow declined compared to both periods, while capital expenditure rose, pushing free cash flow further negative and compressing the margin.
Compared to the preceding quarter, revenue was lower and free cash flow was more negative with a weaker margin. Versus the same quarter last year, revenue was similar but free cash flow worsened as operating cash flow fell and capital expenditure rose.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap widened in the current quarter.