Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Operating cash flow improved year over year, while capital expenditure decreased, leading to a less negative free cash flow and an improved free cash flow margin.
- Operating cash flow was positive but capital expenditure exceeded it, resulting in negative free cash flow. The free cash flow margin was negative, reflecting the gap between cash generation and investment spending.
- Compared to the prior quarter, revenue was higher and capital expenditure was lower, while operating cash flow was lower, yet free cash flow improved. Versus the same quarter a year earlier, revenue, operating cash flow, and free cash flow all improved, with capital expenditure slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$995.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$459.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
-6.9%
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 | $5.7B | $2.1B | $2.0B | $8.0M | 0.1% |
| 2023-09-30 | $7.0B | $2.8B | $2.7B | $177.0M | 2.5% |
| 2023-12-31 | $6.0B | $1.8B | $2.5B | -$721.0M | -11.9% |
| 2024-03-31 | $6.6B | $1.3B | $1.8B | -$459.0M | -6.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -42.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.6% | 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 Improvement
Operating cash flow increased notably compared to the same quarter last year, providing a stronger base for funding capital investments.
This improvement was the main contributor to the reduction in negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive but capital expenditure exceeded it, resulting in negative free cash flow. The free cash flow margin was negative, reflecting the gap between cash generation and investment spending.
Compared to the prior quarter, revenue was higher and capital expenditure was lower, while operating cash flow was lower, yet free cash flow improved. Versus the same quarter a year earlier, revenue, operating cash flow, and free cash flow all improved, with capital expenditure slightly lower.
Monitor the trend in capital expenditure relative to operating cash flow, as it remains the primary factor in free cash flow generation.