Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative in the current quarter, driven by an operating cash outflow and ongoing capital spending. Revenue was higher than the same quarter last year but lower than the preceding quarter.
- Operating cash flow was negative, resulting in a negative free cash flow margin despite positive revenue. Capital expenditure remained present, further reducing free cash flow.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all weakened significantly, turning from positive to negative. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, while revenue was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$690.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$73.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$7.0M
Cash generated by operations before capital spending.
CapEx
$66.0M
Capital spending and related asset purchases.
FCF margin
-2.3%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $3.4B | $296.0M | $83.0M | $213.0M | 6.2% |
| 2023-09-30 | $3.3B | $258.0M | $79.0M | $179.0M | 5.4% |
| 2023-12-30 | $3.9B | $549.0M | $178.0M | $371.0M | 9.5% |
| 2024-03-30 | $3.1B | -$7.0M | $66.0M | -$73.0M | -2.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -36.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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 positive in both prior periods to negative in the current quarter, which was the primary factor behind the negative free cash flow. Capital expenditure was relatively stable compared to the year-ago quarter.
The negative operating cash flow fully absorbed the quarter's capital spending, resulting in a free cash flow deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, resulting in a negative free cash flow margin despite positive revenue. Capital expenditure remained present, further reducing free cash flow.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all weakened significantly, turning from positive to negative. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, while revenue was slightly higher.
Monitor whether operating cash flow can return to positive levels in the coming quarter.