Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative for the quarter, driven by a large operating cash outflow that more than offset capital spending. Revenue was higher than a year ago, but the cash conversion weakened significantly compared with the prior quarter.
- Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. Revenue was positive, but cash generation did not follow, indicating a low cash conversion rate for the quarter.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow both turned from positive to negative, and the free cash flow margin weakened sharply. Versus the same quarter one year earlier, revenue was higher, while operating cash flow and free cash flow remained negative at similar levels, and the free cash flow margin was slightly improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$976.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$706.0M
Cash generated by operations before capital spending.
CapEx
$270.0M
Capital spending and related asset purchases.
FCF margin
-9.6%
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 | $9.6B | $919.0M | $304.0M | $615.0M | 6.4% |
| 2023-09-30 | $9.8B | $1.2B | $359.0M | $869.0M | 8.9% |
| 2023-12-31 | $10.6B | $2.4B | $803.0M | $1.6B | 15.3% |
| 2024-03-31 | $10.1B | -$706.0M | $270.0M | -$976.0M | -9.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -103.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.3B | 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
Operating cash flow moved from a large positive in the prior quarter to a negative amount this quarter, which was the strongest observable driver of the free cash flow decline. Revenue was higher than a year ago, but the cash outflow from operations overwhelmed that growth.
The negative operating cash flow directly caused free cash flow to be negative, despite capital expenditure being lower than both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. Revenue was positive, but cash generation did not follow, indicating a low cash conversion rate for the quarter.
Compared with the immediately preceding quarter, operating cash flow and free cash flow both turned from positive to negative, and the free cash flow margin weakened sharply. Versus the same quarter one year earlier, revenue was higher, while operating cash flow and free cash flow remained negative at similar levels, and the free cash flow margin was slightly improved.
Monitor whether operating cash flow can return to positive levels in the coming quarter, as the current negative cash flow is the primary factor behind the weak free cash flow.