Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow remained negative but improved significantly compared to both the prior quarter and the same quarter last year, driven by a narrower operating cash outflow. Revenue was stable versus the prior quarter and higher than the year-ago period.
- Operating cash flow, while still negative, was markedly less negative than in the preceding quarter and the year-ago quarter. Capital expenditure increased slightly, but the overall free cash flow margin improved as the operating cash flow deficit narrowed.
- Compared to the immediately preceding quarter, free cash flow improved and the margin tightened. Relative to the same quarter one year earlier, both operating cash flow and free cash flow showed substantial improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$5.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$754.0M
Cash generated by operations before capital spending.
CapEx
$283.0M
Capital spending and related asset purchases.
FCF margin
-89.6%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $1.2B | -$754.0M | $283.0M | -$1.0B | -89.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | $237.0M | 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 improvement
Operating cash flow showed a material reduction in its deficit compared to both the prior quarter and the year-ago quarter, while revenue remained stable.
This improvement drove the narrower free cash flow deficit and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow, while still negative, was markedly less negative than in the preceding quarter and the year-ago quarter. Capital expenditure increased slightly, but the overall free cash flow margin improved as the operating cash flow deficit narrowed.
Compared to the immediately preceding quarter, free cash flow improved and the margin tightened. Relative to the same quarter one year earlier, both operating cash flow and free cash flow showed substantial improvement.
Monitor the trajectory of capital expenditures in light of the contractual commitments under the REV Tax Credit Agreement with the State of Illinois.