Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative this quarter, driven by operating cash flow that was lower than capital expenditure. Revenue was higher than the prior quarter but operating cash flow weakened significantly.
- Revenue was higher than both the prior quarter and the same quarter last year, yet operating cash flow was substantially lower, resulting in a negative free cash flow margin. Capital expenditure was slightly higher than the prior quarter but lower than a year ago.
- Compared to the immediately preceding quarter, free cash flow shifted from positive to negative, with operating cash flow lower and capital expenditure higher. Versus the same quarter one year earlier, free cash flow also weakened, as operating cash flow was lower despite similar revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$153.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$312.0M
Cash generated by operations before capital spending.
CapEx
$465.0M
Capital spending and related asset purchases.
FCF margin
-4.8%
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 | $3.0B | $1.6B | $442.0M | $1.1B | 37.5% |
| 2023-09-30 | $4.8B | $1.6B | $336.0M | $1.2B | 25.6% |
| 2023-12-31 | $2.9B | $881.0M | $414.0M | $467.0M | 16.2% |
| 2024-03-31 | $3.2B | $312.0M | $465.0M | -$153.0M | -4.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -850.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.7% | 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 decline
Operating cash flow was lower than both the prior quarter and the same quarter last year, while revenue was stable or higher. This divergence is the strongest observable driver of the negative free cash flow.
The lower operating cash flow directly caused free cash flow to turn negative, despite capital expenditure being relatively stable.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the same quarter last year, yet operating cash flow was substantially lower, resulting in a negative free cash flow margin. Capital expenditure was slightly higher than the prior quarter but lower than a year ago.
Compared to the immediately preceding quarter, free cash flow shifted from positive to negative, with operating cash flow lower and capital expenditure higher. Versus the same quarter one year earlier, free cash flow also weakened, as operating cash flow was lower despite similar revenue.
Monitor whether operating cash flow can recover to a level that covers capital expenditure, given the current quarter's shortfall.