Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned negative, leading to a larger free cash flow deficit compared to both the prior quarter and the same quarter last year. Revenue was stable, but the free cash flow margin weakened significantly.
- Revenue was essentially flat, yet operating cash flow shifted from positive to negative, and capital expenditure was higher than a year ago. The combination produced a negative free cash flow and a free cash flow margin that was lower than both the preceding quarter and the same quarter one year earlier.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$342.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$58.9M
Cash generated by operations before capital spending.
CapEx
$283.8M
Capital spending and related asset purchases.
FCF margin
-6.4%
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 | $6.2B | $1.2B | $206.1M | $1.0B | 16.0% |
| 2023-09-30 | $6.1B | $1.3B | $152.9M | $1.2B | 18.9% |
| 2023-12-31 | $5.3B | $918.6M | $319.5M | $599.1M | 11.4% |
| 2024-03-31 | $5.4B | -$58.9M | $283.8M | -$342.7M | -6.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -67.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.3B | 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 Turned Negative
Operating cash flow dropped from positive in both the prior quarter and the year-ago quarter to negative in the current quarter. This shift was the strongest observable driver of the free cash flow decline.
The negative operating cash flow directly caused free cash flow to be more negative than in the comparable periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was essentially flat, yet operating cash flow shifted from positive to negative, and capital expenditure was higher than a year ago. The combination produced a negative free cash flow and a free cash flow margin that was lower than both the preceding quarter and the same quarter one year earlier.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, while capital expenditure was higher.
Monitor whether operating cash flow can return to positive levels in the coming quarter, as it was the primary factor behind the free cash flow deficit.