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, though it improved compared to the same quarter last year. The cash conversion weakened as operating cash flow declined while capital expenditure rose.
- Revenue was slightly lower than the prior quarter and the year-ago quarter. Operating cash flow decreased compared to the prior quarter but increased versus the year-ago quarter. Capital expenditure was higher than both comparison periods, resulting in a more negative free cash flow and a weaker free cash flow margin.
- Compared to the prior quarter, free cash flow was lower and the margin weakened, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, free cash flow improved and the margin was less negative, as operating cash flow increased more than capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$811.7M
Cash generated by operations before capital spending.
CapEx
$2.1B
Capital spending and related asset purchases.
FCF margin
-44.5%
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 | $3.0B | $626.6M | $1.4B | -$818.9M | -27.3% |
| 2024-03-31 | $2.9B | $801.7M | $1.7B | -$867.7M | -29.6% |
| 2024-06-30 | $3.0B | $1.3B | $1.6B | -$345.2M | -11.6% |
| 2024-12-31 | $2.9B | $811.7M | $2.1B | -$1.3B | -44.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -211.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 72.2% | 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.
Capital Expenditure Increase
Capital expenditure rose compared to both the prior quarter and the same quarter last year, while revenue was slightly lower. This was the strongest observable factor behind the negative free cash flow.
Higher capital expenditure directly widened the gap between operating cash flow and free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter and the year-ago quarter. Operating cash flow decreased compared to the prior quarter but increased versus the year-ago quarter. Capital expenditure was higher than both comparison periods, resulting in a more negative free cash flow and a weaker free cash flow margin.
Compared to the prior quarter, free cash flow was lower and the margin weakened, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, free cash flow improved and the margin was less negative, as operating cash flow increased more than capital expenditure.
Monitor the trajectory of capital expenditure, which was substantially higher than both the prior quarter and the year-ago quarter.