Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative and significantly lower than the prior quarter, driven by a negative operating cash flow. Compared to the same quarter last year, free cash flow was also lower, with a weakened margin.
- Revenue was stable relative to both comparison periods, but operating cash flow turned negative, resulting in a negative free cash flow and a weakened free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, operating cash flow shifted from positive to negative, and free cash flow turned from positive to negative, with a weakened margin. Versus the same quarter one year earlier, operating cash flow was more negative, and free cash flow was lower with a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$674.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$414.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$269.0M
Cash generated by operations before capital spending.
CapEx
$145.0M
Capital spending and related asset purchases.
FCF margin
-12.3%
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 | $3.3B | $363.0M | $121.0M | $242.0M | 7.4% |
| 2024-03-31 | $3.4B | $150.0M | $113.0M | $37.0M | 1.1% |
| 2024-06-30 | $3.5B | $943.0M | $134.0M | $809.0M | 22.9% |
| 2024-09-30 | $3.4B | -$269.0M | $145.0M | -$414.0M | -12.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -216.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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.
Negative Operating Cash Flow
Operating cash flow was negative this quarter, a sharp reversal from the positive level in the prior quarter and a deeper negative compared to the same quarter last year. This was the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative despite stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to both comparison periods, but operating cash flow turned negative, resulting in a negative free cash flow and a weakened free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, operating cash flow shifted from positive to negative, and free cash flow turned from positive to negative, with a weakened margin. Versus the same quarter one year earlier, operating cash flow was more negative, and free cash flow was lower with a weakened margin.
Monitor whether operating cash flow returns to positive levels in the coming quarter.