Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative in the current quarter, improving from the prior quarter but weakening from the same quarter a year ago. Revenue and operating cash flow increased sequentially, while capital expenditure also rose, narrowing the free cash flow deficit.
- Operating cash flow as a share of revenue improved from the prior quarter but declined compared to the year-ago period. Capital expenditure increased relative to both periods, resulting in a negative free cash flow margin that was better than the prior quarter but worse than the year-ago quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow margin all improved, while capital expenditure was slightly higher. Versus the same quarter a year ago, revenue was similar, but operating cash flow declined, capital expenditure rose substantially, and free cash flow turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$240.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$897.0M
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-11.0%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $1.6B | $533.0M | $1.0B | -$493.0M | -30.5% |
| 2024-03-31 | $1.8B | $492.0M | $890.0M | -$398.0M | -21.9% |
| 2024-06-30 | $1.7B | $557.0M | $1.0B | -$445.0M | -26.3% |
| 2024-09-30 | $2.2B | $897.0M | $1.1B | -$240.0M | -11.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -52.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 52.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher Capital Expenditure
The increase in capital expenditure was the strongest observable driver, outpacing the change in operating cash flow. According to the filing, there have been no material changes in cash requirements beyond ordinary business activities, indicating that capital expenditure remains within normal planning.
Higher capital spending relative to operating cash flow was the primary reason for the negative free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue improved from the prior quarter but declined compared to the year-ago period. Capital expenditure increased relative to both periods, resulting in a negative free cash flow margin that was better than the prior quarter but worse than the year-ago quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow margin all improved, while capital expenditure was slightly higher. Versus the same quarter a year ago, revenue was similar, but operating cash flow declined, capital expenditure rose substantially, and free cash flow turned from positive to negative.
Monitor whether capital expenditure continues to exceed operating cash flow, as this directly affects free cash flow generation.