Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter but lower than the same quarter last year. Free cash flow remained negative, though the margin improved slightly from the prior quarter.
- Operating cash flow was lower than the prior quarter and significantly lower than a year ago, while capital expenditure also decreased. The resulting free cash flow was negative, with a margin that improved modestly from the prior quarter but weakened sharply from the year-ago quarter.
- Compared to the prior quarter, revenue was stable, operating cash flow was lower, capital expenditure was lower, and free cash flow was less negative with an improved margin. Compared to the same quarter last year, revenue was lower, operating cash flow was lower, capital expenditure was lower, and free cash flow turned from positive to negative with a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$76.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$227.1M
Cash generated by operations before capital spending.
CapEx
$303.1M
Capital spending and related asset purchases.
FCF margin
-5.6%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $2.4B | -$97.0M | $689.3M | -$786.3M | -33.4% |
| 2024-03-31 | $1.4B | $97.5M | $583.0M | -$485.6M | -35.7% |
| 2024-06-30 | $1.4B | $367.7M | $451.6M | -$83.9M | -5.9% |
| 2024-09-30 | $1.4B | $227.1M | $303.1M | -$76.0M | -5.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 7.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | 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 exceeded operating cash flow in the current quarter, leading to negative free cash flow. This pattern was also present in the prior quarter but was reversed in the year-ago quarter when operating cash flow was higher.
The gap between capital expenditure and operating cash flow is the strongest observable driver of 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 lower than the prior quarter and significantly lower than a year ago, while capital expenditure also decreased. The resulting free cash flow was negative, with a margin that improved modestly from the prior quarter but weakened sharply from the year-ago quarter.
Compared to the prior quarter, revenue was stable, operating cash flow was lower, capital expenditure was lower, and free cash flow was less negative with an improved margin. Compared to the same quarter last year, revenue was lower, operating cash flow was lower, capital expenditure was lower, and free cash flow turned from positive to negative with a weakened margin.
Monitor the trajectory of operating cash flow, which declined sequentially and year-over-year despite stable revenue.