Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved significantly from the prior quarter, while capital expenditure remained relatively stable, resulting in a much smaller negative free cash flow. Compared to the same quarter last year, operating cash flow was higher but capital expenditure also increased, turning a small positive free cash flow into a slight negative.
- Revenue increased from the prior quarter, and operating cash flow rose at a faster pace, while capital expenditure was little changed. This combination lifted the free cash flow margin from deeply negative to near zero, indicating a marked improvement in cash conversion efficiency.
- Sequentially, free cash flow improved sharply from a large deficit to a minimal deficit, driven by a substantial increase in operating cash flow. Year over year, free cash flow weakened from a small surplus to a slight deficit, as capital expenditure grew more than operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$825.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$679.0M
Cash generated by operations before capital spending.
CapEx
$683.0M
Capital spending and related asset purchases.
FCF margin
-0.3%
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 | n/a | $527.0M | $796.0M | -$269.0M | n/a |
| 2024-03-31 | n/a | $382.0M | $609.0M | -$227.0M | n/a |
| 2024-06-30 | $1.1B | $345.0M | $670.0M | -$325.0M | -28.5% |
| 2024-09-30 | $1.3B | $679.0M | $683.0M | -$4.0M | -0.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 51.4% | 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.
Operating Cash Flow Surge
Operating cash flow rose substantially from the prior quarter, far outpacing the increase in revenue. This was the primary factor narrowing the free cash flow deficit.
The improvement in operating cash flow was the strongest observable driver, turning a deeply negative free cash flow into a near-breakeven position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow rose at a faster pace, while capital expenditure was little changed. This combination lifted the free cash flow margin from deeply negative to near zero, indicating a marked improvement in cash conversion efficiency.
Sequentially, free cash flow improved sharply from a large deficit to a minimal deficit, driven by a substantial increase in operating cash flow. Year over year, free cash flow weakened from a small surplus to a slight deficit, as capital expenditure grew more than operating cash flow.
Monitor whether capital expenditure continues to exceed operating cash flow, as this dynamic keeps free cash flow negative.