Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved compared to the prior quarter, but operating cash flow declined, leading to a smaller negative free cash flow. Versus the same quarter last year, all cash flow metrics weakened significantly, with free cash flow turning from positive to negative.
- Operating cash flow as a proportion of revenue was lower than the prior quarter and much lower than the same quarter last year. Capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative free cash flow margin.
- Compared to the prior quarter, revenue was higher while operating cash flow was lower, but capital expenditure decreased more sharply, so free cash flow improved from a larger negative to a smaller negative. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, with free cash flow shifting from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$753.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$136.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$661.0M
Cash generated by operations before capital spending.
CapEx
$797.0M
Capital spending and related asset purchases.
FCF margin
-4.9%
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 | $2.4B | $572.0M | $705.0M | -$133.0M | -5.5% |
| 2023-09-30 | $2.5B | $687.0M | $916.0M | -$229.0M | -9.3% |
| 2023-12-31 | $2.6B | $710.0M | $965.0M | -$255.0M | -9.8% |
| 2024-03-31 | $2.8B | $661.0M | $797.0M | -$136.0M | -4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -25.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 28.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.1B | 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 relative to operating cash flow
Capital expenditure remained elevated relative to operating cash flow, which was the strongest observable factor behind the negative free cash flow. The gap between the two narrowed from the prior quarter but widened compared to the same quarter last year.
The excess of capital expenditure over operating cash flow drove free cash flow negative in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter and much lower than the same quarter last year. Capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative free cash flow margin.
Compared to the prior quarter, revenue was higher while operating cash flow was lower, but capital expenditure decreased more sharply, so free cash flow improved from a larger negative to a smaller negative. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, with free cash flow shifting from positive to negative.
Monitor whether capital expenditure continues to exceed operating cash flow, as this pattern sustains negative free cash flow.