Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sequentially, driving a higher free cash flow despite a revenue decline. Compared to the same quarter last year, free cash flow was lower as operating cash flow decreased.
- Revenue was negative, while operating cash flow was positive, resulting in a negative free cash flow margin. Capital expenditure increased from the prior quarter but was lower than the year-ago quarter.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, while revenue was lower. Versus the same quarter last year, operating cash flow and free cash flow were lower, and revenue was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$334.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$425.6M
Cash generated by operations before capital spending.
CapEx
$91.6M
Capital spending and related asset purchases.
FCF margin
-56.2%
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 | $45.1M | $313.7M | $115.4M | $198.3M | 439.5% |
| 2023-12-31 | $675.0M | $432.6M | $99.8M | $332.8M | 49.3% |
| 2024-03-31 | $657.9M | $294.5M | $77.3M | $217.2M | 33.0% |
| 2024-06-30 | -$594.3M | $425.6M | $91.6M | $334.0M | -56.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 205.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | -15.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Improvement
Operating cash flow increased from the prior quarter, which was the primary factor behind the sequential rise in free cash flow. This improvement occurred even as revenue declined.
The higher operating cash flow more than offset the increase in capital expenditure, leading to stronger free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was negative, while operating cash flow was positive, resulting in a negative free cash flow margin. Capital expenditure increased from the prior quarter but was lower than the year-ago quarter.
Compared to the prior quarter, operating cash flow and free cash flow were higher, while revenue was lower. Versus the same quarter last year, operating cash flow and free cash flow were lower, and revenue was also lower.
Monitor the trend in operating cash flow, as it declined from the year-ago level despite a sequential improvement.