Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned negative, driving free cash flow deeply negative despite a slight revenue increase. The cash conversion weakened sharply compared with both the prior quarter and the same quarter last year.
- Revenue was higher than the prior quarter, but operating cash flow shifted from a large positive to a negative figure, resulting in a negative free cash flow and a negative free cash flow margin. Capital expenditure was lower than both comparison periods, yet the cash conversion remained deeply negative.
- Compared with the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened substantially. Versus the same quarter one year earlier, revenue was lower and all cash flow metrics were significantly weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.7B
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
$149.0M
Capital spending and related asset purchases.
FCF margin
-31.6%
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 | $4.7B | -$5.2B | $239.0M | -$5.5B | -117.2% |
| 2023-09-30 | $4.6B | -$5.0B | $239.0M | -$5.3B | -114.0% |
| 2023-12-31 | $4.5B | $20.0B | $167.0M | $19.9B | 445.6% |
| 2024-03-31 | $4.7B | -$1.3B | $149.0M | -$1.5B | -31.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -110.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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.
Operating Cash Flow Swing
Operating cash flow moved from a large positive in both comparison periods to a negative figure in the current quarter. This swing is the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly caused free cash flow to turn deeply negative, despite lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, but operating cash flow shifted from a large positive to a negative figure, resulting in a negative free cash flow and a negative free cash flow margin. Capital expenditure was lower than both comparison periods, yet the cash conversion remained deeply negative.
Compared with the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened substantially. Versus the same quarter one year earlier, revenue was lower and all cash flow metrics were significantly weaker.
Monitor whether operating cash flow can return to positive territory in the coming quarter, as it is the primary driver of free cash flow.