Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were lower than the preceding quarter but higher than the same quarter one year earlier. Free cash flow remained negative, with the margin improving from a year ago but weakening from the prior quarter.
- Operating cash flow as a share of revenue was lower than the prior quarter but higher than the year-ago quarter, indicating a mixed cash conversion trend.
- Compared to the preceding quarter, free cash flow was more negative due to higher capital expenditure and lower operating cash flow. Compared to the same quarter one year earlier, free cash flow 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
-$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$477.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$330.7M
Cash generated by operations before capital spending.
CapEx
$808.0M
Capital spending and related asset purchases.
FCF margin
-72.5%
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 | $1.2B | $245.3M | $769.6M | -$524.4M | -45.3% |
| 2024-03-31 | $1.6B | $746.6M | $645.9M | $100.7M | 6.1% |
| 2024-06-30 | $701.5M | $411.2M | $713.6M | -$302.4M | -43.1% |
| 2024-09-30 | $657.9M | $330.7M | $808.0M | -$477.3M | -72.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -356.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 122.8% | 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 was higher than both the prior quarter and the year-ago quarter, outpacing operating cash flow.
The elevated capital expenditure was the primary factor behind the negative free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was lower than the prior quarter but higher than the year-ago quarter, indicating a mixed cash conversion trend.
Compared to the preceding quarter, free cash flow was more negative due to higher capital expenditure and lower operating cash flow. Compared to the same quarter one year earlier, free cash flow was less negative as operating cash flow increased more than capital expenditure.
Monitor the relationship between capital expenditure and operating cash flow, as capital expenditure exceeded operating cash flow in the current quarter.