Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was substantially higher than the prior quarter but slightly lower than the same quarter a year ago. Capital expenditure was slightly lower than the previous quarter but slightly higher than the year-ago quarter, resulting in a negative free cash flow margin that improved from the prior quarter but weakened from the year-ago level.
- Revenue increased from the prior quarter but decreased from the year-ago quarter. Operating cash flow more than covered capital expenditure in the current quarter, a conversion improvement compared with the prior quarter where operating cash flow was lower relative to capital expenditure.
- Compared with the immediately preceding quarter, operating cash flow was higher, capital expenditure was lower, and free cash flow turned from deeply negative to slightly negative. Compared with the same quarter one year earlier, operating cash flow was lower and capital expenditure was higher, while free cash flow shifted from positive to slightly negative.
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
-$82.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$1.9B
Capital spending and related asset purchases.
FCF margin
-2.2%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $2.9B | $1.8B | $2.5B | -$695.0M | -24.0% |
| 2023-09-30 | $2.9B | $1.4B | $1.8B | -$400.0M | -13.8% |
| 2023-12-31 | $3.2B | $1.1B | $2.3B | -$1.2B | -38.9% |
| 2024-03-31 | $3.7B | $1.9B | $1.9B | -$82.0M | -2.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -10.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 52.3% | 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 vs. operating cash flow
Operating cash flow improved from the prior quarter but remains below the year-ago quarter, while capital expenditure decreased sequentially but increased year-over-year. The narrowing gap between operating cash flow and capital expenditure was the strongest observable driver of the free cash flow change versus the prior quarter.
Free cash flow turned from deeply negative to slightly negative versus the prior quarter, but weakened from positive to negative compared with a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter but decreased from the year-ago quarter. Operating cash flow more than covered capital expenditure in the current quarter, a conversion improvement compared with the prior quarter where operating cash flow was lower relative to capital expenditure.
Compared with the immediately preceding quarter, operating cash flow was higher, capital expenditure was lower, and free cash flow turned from deeply negative to slightly negative. Compared with the same quarter one year earlier, operating cash flow was lower and capital expenditure was higher, while free cash flow shifted from positive to slightly negative.
Monitor whether capital expenditure remains at a level that allows operating cash flow to fully cover it, given the current revenue and cash flow trends.