Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative this quarter, a substantial decline from both the previous quarter and the same quarter last year. Operating cash flow weakened while capital expenditure increased.
- Revenue was lower than a year earlier but higher than the prior quarter. Operating cash flow shifted from positive to negative, leading to a negative free cash flow and a much lower free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow shifted from positive to negative, as operating cash flow decreased substantially and capital expenditure increased. Relative to the same quarter a year ago, free cash flow also decreased, with operating cash flow lower and capital spending higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$312.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$60.0M
Cash generated by operations before capital spending.
CapEx
$252.0M
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 | $4.9B | $536.0M | $122.0M | $414.0M | 8.5% |
| 2023-09-30 | $4.6B | $892.0M | $139.0M | $753.0M | 16.2% |
| 2023-12-31 | $2.3B | $898.0M | $135.0M | $763.0M | 32.5% |
| 2024-03-31 | $3.8B | -$60.0M | $252.0M | -$312.0M | -8.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -76.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.1B | 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 Weakness
Operating cash flow turned negative this quarter, a significant worsening from both the prior quarter and the year-ago period. This was the primary factor behind the negative free cash flow.
Continued weakness in operating cash flow may pressure liquidity and constrain capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than a year earlier but higher than the prior quarter. Operating cash flow shifted from positive to negative, leading to a negative free cash flow and a much lower free cash flow margin.
Compared to the immediately preceding quarter, free cash flow shifted from positive to negative, as operating cash flow decreased substantially and capital expenditure increased. Relative to the same quarter a year ago, free cash flow also decreased, with operating cash flow lower and capital spending higher.
Monitor the company's cash and short-term investments, which declined from the end of the prior quarter.