Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was minimal despite higher revenue, as operating cash flow did not keep pace with increased capital expenditure. Compared to the prior quarter, cash generation weakened; versus the same quarter last year, both operating cash flow and free cash flow were substantially lower.
- Revenue rose from the prior quarter, but operating cash flow increased only modestly, while capital expenditure grew more sharply, resulting in a very low free cash flow margin. The conversion of revenue into free cash flow was weak.
- Compared to the immediately preceding quarter, revenue was higher but free cash flow was lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue was slightly lower, while operating cash flow and free cash flow were substantially lower, and the margin contracted.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$541.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$9.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$201.1M
Cash generated by operations before capital spending.
CapEx
$191.4M
Capital spending and related asset purchases.
FCF margin
0.5%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $2.2B | $547.7M | $311.7M | $236.0M | 10.8% |
| 2023-12-31 | $1.8B | $481.6M | $206.3M | $275.3M | 15.0% |
| 2024-03-31 | $1.5B | $173.4M | $152.8M | $20.6M | 1.3% |
| 2024-06-30 | $2.0B | $201.1M | $191.4M | $9.7M | 0.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 3.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | 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 Growth
Capital expenditure increased compared to both the prior quarter and the same quarter last year, while operating cash flow did not rise proportionally. This was the strongest observable factor compressing free cash flow.
Higher capital expenditure absorbed a larger share of operating cash flow, leaving minimal free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter, but operating cash flow increased only modestly, while capital expenditure grew more sharply, resulting in a very low free cash flow margin. The conversion of revenue into free cash flow was weak.
Compared to the immediately preceding quarter, revenue was higher but free cash flow was lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue was slightly lower, while operating cash flow and free cash flow were substantially lower, and the margin contracted.
Monitor the relationship between operating cash flow and capital expenditure, as the gap between them has narrowed significantly.