Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative but improved significantly compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. The cash conversion rate strengthened as operating cash flow increased relative to revenue.
- Revenue was stable compared to a year ago and slightly lower than the prior quarter, while operating cash flow rose substantially year over year and sequentially. Capital expenditure decreased from both comparison periods, leading to a narrower free cash flow deficit and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow was less negative and the margin improved, supported by higher operating cash flow and slightly lower capital expenditure. Versus the same quarter a year ago, free cash flow and margin strengthened markedly as operating cash flow increased and capital spending declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$639.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$1.7B
Capital spending and related asset purchases.
FCF margin
-21.6%
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 | $3.1B | $287.0M | $2.1B | -$1.9B | -60.3% |
| 2024-06-30 | $2.9B | $392.0M | $1.7B | -$1.3B | -43.9% |
| 2024-09-30 | $3.3B | $985.0M | $1.8B | -$847.0M | -25.8% |
| 2024-12-31 | $3.0B | $1.1B | $1.7B | -$639.0M | -21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -136.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 58.3% | 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 Growth
Operating cash flow increased both sequentially and year over year, providing the primary lift to free cash flow despite a slight revenue decline from the prior quarter. This improvement was the strongest observable driver of the quarter's results.
Higher operating cash flow directly reduced the free cash flow deficit and improved the margin without relying on revenue growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to a year ago and slightly lower than the prior quarter, while operating cash flow rose substantially year over year and sequentially. Capital expenditure decreased from both comparison periods, leading to a narrower free cash flow deficit and an improved free cash flow margin.
Compared to the prior quarter, free cash flow was less negative and the margin improved, supported by higher operating cash flow and slightly lower capital expenditure. Versus the same quarter a year ago, free cash flow and margin strengthened markedly as operating cash flow increased and capital spending declined.
Monitor whether capital expenditure continues to decline or stabilizes, as it was the largest cash outflow and a key factor in the free cash flow improvement.