Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the quarter, driven by capital expenditure exceeding operating cash flow. Revenue and operating cash flow were lower than the prior quarter but higher than the same quarter last year.
- Operating cash flow was insufficient to cover capital expenditure, resulting in a negative free cash flow margin. The margin improved compared to the same quarter one year earlier but weakened relative to the immediately preceding quarter.
- Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure was higher, leading to a more negative free cash flow. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was less 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
-$473.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$817.0M
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
-24.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $1.9B | $817.0M | $1.3B | -$473.0M | -24.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -227.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 66.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.8B | 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 the largest cash outflow and exceeded operating cash flow, causing negative free cash flow. This pattern was consistent across all periods shown.
The elevated capital expenditure relative to operating cash flow is the primary observable factor behind the negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was insufficient to cover capital expenditure, resulting in a negative free cash flow margin. The margin improved compared to the same quarter one year earlier but weakened relative to the immediately preceding quarter.
Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure was higher, leading to a more negative free cash flow. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was less negative.
Monitor the trend of capital expenditure relative to operating cash flow, as the gap widened sequentially.