Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was negative, driven by capital expenditure exceeding operating cash flow. The free cash flow margin reflected a cash outflow relative to revenue.
- Revenue supported operating cash flow, but capital expenditure significantly exceeded it, resulting in negative free cash flow. The free cash flow margin was negative, indicating cash consumption per dollar of revenue.
- Compared to the immediately preceding quarter, free cash flow weakened as revenue was lower and capital expenditure increased, while operating cash flow declined. Relative to the same quarter one year earlier, free cash flow improved slightly, with operating cash flow higher and capital expenditure moderately higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$811.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$255.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$639.0M
Cash generated by operations before capital spending.
CapEx
$894.0M
Capital spending and related asset purchases.
FCF margin
-21.6%
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 | 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% |
| 2024-12-31 | $1.2B | $639.0M | $894.0M | -$255.0M | -21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -106.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 75.9% | 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 increased substantially compared to the prior quarter and was the primary factor behind the free cash flow decline. The company’s filing notes that significant cash is invested in regulated capital projects with recovery subject to regulatory lag.
Higher capital expenditure may continue to pressure free cash flow if operating cash flow does not keep pace.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue supported operating cash flow, but capital expenditure significantly exceeded it, resulting in negative free cash flow. The free cash flow margin was negative, indicating cash consumption per dollar of revenue.
Compared to the immediately preceding quarter, free cash flow weakened as revenue was lower and capital expenditure increased, while operating cash flow declined. Relative to the same quarter one year earlier, free cash flow improved slightly, with operating cash flow higher and capital expenditure moderately higher.
Monitor the level of capital expenditure relative to operating cash flow, as well as any regulatory lag in cost recovery mentioned in the filing.