Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow turned positive from a negative year-ago level, but free cash flow remained negative due to capital expenditure exceeding operating cash flow.
- Operating cash flow was lower than revenue, and capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative free cash flow margin.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, operating cash flow improved from negative to positive, free cash flow improved from a larger negative to a smaller negative, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$125.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$342.0M
Cash generated by operations before capital spending.
CapEx
$467.0M
Capital spending and related asset purchases.
FCF margin
-0.6%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $18.3B | $719.0M | $526.0M | $193.0M | 1.1% |
| 2023-09-30 | $13.5B | $3.3B | $564.0M | $2.8B | 20.4% |
| 2023-12-31 | $19.9B | $4.7B | $805.0M | $3.9B | 19.6% |
| 2024-03-31 | $19.3B | $342.0M | $467.0M | -$125.0M | -0.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -7.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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 Exceeds Operating Cash Flow
Capital expenditure was higher than operating cash flow, causing free cash flow to be negative despite a positive operating cash flow. This is the strongest observable driver of the quarter's cash conversion.
The gap between capital expenditure and operating cash flow is the primary reason free cash flow remained negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than revenue, and capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative free cash flow margin.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, operating cash flow improved from negative to positive, free cash flow improved from a larger negative to a smaller negative, and free cash flow margin improved.
Monitor whether capital expenditure continues to exceed operating cash flow, as this directly drives the negative free cash flow.