Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative and deepened versus both the prior quarter and the same quarter last year. The shortfall was driven by higher capital spending alongside lower operating cash flow.
- Revenue improved, but operating cash flow declined while capital expenditure rose, causing free cash flow to become more negative and the free cash flow margin to weaken.
- Compared with the preceding quarter, revenue was higher but operating cash flow was lower, leading to a worsened free cash flow position. Versus the same quarter one year earlier, revenue also improved while operating cash flow weakened, and free cash flow was more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$672.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$344.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$189.8M
Cash generated by operations before capital spending.
CapEx
$534.0M
Capital spending and related asset purchases.
FCF margin
-26.3%
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 | $1.6B | $396.3M | $396.3M | -$48000 | -0.0% |
| 2023-12-31 | $991.6M | $373.8M | $531.8M | -$158.0M | -15.9% |
| 2024-03-31 | $951.7M | $347.4M | $517.8M | -$170.4M | -17.9% |
| 2024-06-30 | $1.3B | $189.8M | $534.0M | -$344.2M | -26.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -165.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 40.8% | 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 Increase
Capital expenditure was higher than both the prior quarter and the year-ago period. The company noted planned additions to its facilities, consistent with the rising spending. At the same time, operating cash flow fell, further pressuring free cash flow.
Sustained elevated capital expenditure may continue to constrain free cash flow unless operating cash flow improves.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue improved, but operating cash flow declined while capital expenditure rose, causing free cash flow to become more negative and the free cash flow margin to weaken.
Compared with the preceding quarter, revenue was higher but operating cash flow was lower, leading to a worsened free cash flow position. Versus the same quarter one year earlier, revenue also improved while operating cash flow weakened, and free cash flow was more negative.
Monitor operating cash flow trends given its decline despite higher revenue.