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 same quarter one year earlier, while operating cash flow improved. Free cash flow remained negative and the free cash flow margin weakened relative to both the prior quarter and the year-ago quarter.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a weakened free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher and operating cash flow was lower, while capital expenditure was higher, leading to a more negative free cash flow and a weakened margin. Compared to the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was higher, and free cash flow was more negative with a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$609.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$282.0M
Cash generated by operations before capital spending.
CapEx
$891.2M
Capital spending and related asset purchases.
FCF margin
-51.8%
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 | $1.6B | $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% |
| 2024-12-31 | $1.2B | $282.0M | $891.2M | -$609.2M | -51.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -173.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 75.8% | 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 the improvement in operating cash flow. This was the strongest observable driver of the more negative free cash flow.
The elevated capital expenditure directly contributed to a larger free cash flow deficit and a weakened free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a weakened free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher and operating cash flow was lower, while capital expenditure was higher, leading to a more negative free cash flow and a weakened margin. Compared to the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was higher, and free cash flow was more negative with a weakened margin.
Monitor the trend in capital expenditure relative to operating cash flow, as the gap widened compared to both the prior quarter and the year-ago quarter.