Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was lower than capital expenditure, resulting in negative free cash flow for the quarter. The free cash flow margin weakened compared to the prior quarter but was similar to the same quarter one year earlier.
- Revenue was higher than the year-ago quarter, yet operating cash flow was lower than capital expenditure, producing a negative free cash flow and a negative free cash flow margin.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was significantly lower, capital expenditure was higher, and free cash flow turned from positive to negative. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow was slightly less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$189.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$25.4M
Cash generated by operations before capital spending.
CapEx
$214.7M
Capital spending and related asset purchases.
FCF margin
-6.2%
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 | $3.9B | $891.0M | $153.7M | $737.3M | 19.0% |
| 2023-09-30 | $3.9B | $710.1M | $159.0M | $551.1M | 14.1% |
| 2023-12-31 | $3.3B | $474.5M | $177.4M | $297.1M | 8.9% |
| 2024-03-31 | $3.0B | $25.4M | $214.7M | -$189.3M | -6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -91.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.7B | 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 outpacing operating cash flow
Capital expenditure was higher than both the prior quarter and the year-ago quarter, while operating cash flow was lower than the prior quarter. This combination drove free cash flow negative.
The negative free cash flow reflects that capital spending exceeded cash generated from operations in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the year-ago quarter, yet operating cash flow was lower than capital expenditure, producing a negative free cash flow and a negative free cash flow margin.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was significantly lower, capital expenditure was higher, and free cash flow turned from positive to negative. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow was slightly less negative.
Monitor the relationship between operating cash flow and capital expenditure, as the gap widened this quarter.