Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained deeply negative this quarter, with a cash burn that was larger than the prior quarter but smaller than the same quarter last year. Revenue and operating cash flow both moved in opposite directions versus the prior quarter, while capital spending was slightly lower.
- Revenue was positive but operating cash flow was negative, leading to a negative free cash flow margin. The cash conversion was weak as operating cash outflows exceeded revenue, and capital expenditure added to the cash drain.
- Compared to the prior quarter, revenue was lower and operating cash outflow was higher, resulting in a more negative free cash flow and a worsened margin. Year-over-year, revenue was higher and operating cash outflow was lower, leading to a less negative free cash flow and an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$5.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.3B
Cash generated by operations before capital spending.
CapEx
$254.0M
Capital spending and related asset purchases.
FCF margin
-126.5%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $1.1B | -$1.4B | $255.0M | -$1.6B | -144.2% |
| 2023-09-30 | $1.3B | -$877.0M | $190.0M | -$1.1B | -79.8% |
| 2023-12-31 | $1.3B | -$1.1B | $298.0M | -$1.4B | -106.8% |
| 2024-03-31 | $1.2B | -$1.3B | $254.0M | -$1.5B | -126.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.5B | 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 Deterioration
The sequential increase in operating cash outflow was the strongest observable driver of the larger free cash flow deficit, as cash from operations moved from a smaller outflow to a larger outflow while revenue declined slightly.
This weakened the cash conversion and widened the negative free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was positive but operating cash flow was negative, leading to a negative free cash flow margin. The cash conversion was weak as operating cash outflows exceeded revenue, and capital expenditure added to the cash drain.
Compared to the prior quarter, revenue was lower and operating cash outflow was higher, resulting in a more negative free cash flow and a worsened margin. Year-over-year, revenue was higher and operating cash outflow was lower, leading to a less negative free cash flow and an improved margin.
Monitor the trajectory of operating cash flow, as it swung to a larger outflow sequentially despite higher revenue in the year-ago comparison.