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 current quarter, driven by a negative operating cash flow and continued capital expenditure. Revenue declined compared to both the prior quarter and the same quarter last year.
- Operating cash flow turned negative, while capital expenditure remained elevated, resulting in a negative free cash flow and a weakened free cash flow margin compared to the prior quarter.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow shifted from positive to negative, and free cash flow became more negative. Versus the same quarter one year earlier, revenue was lower, but free cash flow improved as capital expenditure decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$992.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$347.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.4M
Cash generated by operations before capital spending.
CapEx
$342.8M
Capital spending and related asset purchases.
FCF margin
-28.2%
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 | $1.4B | $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% |
| 2024-12-31 | $1.2B | -$4.4M | $342.8M | -$347.2M | -28.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -461.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 27.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Negative operating cash flow
Operating cash flow turned negative this quarter, reversing from positive in the prior quarter and remaining weaker than the same quarter last year. This was the primary factor behind the negative free cash flow.
The negative operating cash flow directly contributed to the free cash flow deficit, despite lower capital expenditure compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned negative, while capital expenditure remained elevated, resulting in a negative free cash flow and a weakened free cash flow margin compared to the prior quarter.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow shifted from positive to negative, and free cash flow became more negative. Versus the same quarter one year earlier, revenue was lower, but free cash flow improved as capital expenditure decreased.
Monitor whether operating cash flow can return to positive levels in the next quarter.