Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined relative to both the prior quarter and the same period last year. Operating cash flow turned negative, leading to a negative free cash flow margin.
- Operating cash flow was negative, while capital expenditure remained moderate. As a result, free cash flow was negative, reflecting a cash conversion that weakened from the prior quarter.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, with operating cash flow shifting from positive to negative. Versus the same quarter one year earlier, revenue was lower, operating cash flow was weaker, and free cash flow turned negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.6B
Cash generated by operations before capital spending.
CapEx
$90.0M
Capital spending and related asset purchases.
FCF margin
-3.3%
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 | $57.4B | $1.2B | $114.0M | $1.1B | 1.9% |
| 2024-03-31 | $54.9B | -$27.0M | $112.0M | -$139.0M | -0.3% |
| 2024-06-30 | $59.9B | $2.1B | $193.0M | $1.9B | 3.2% |
| 2024-09-30 | $52.3B | -$1.6B | $90.0M | -$1.7B | -3.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -417.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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.
Operating Cash Flow Reversal
The primary observable driver was the swing in operating cash flow from a positive figure in the prior quarter to a negative figure in the current quarter. The filing context attributes this to the unwinding of negative net working capital associated with certain contracts and the annual payment related to the National Opioid Settlement Agreement.
This reversal directly caused free cash flow to become negative, even though capital expenditure was lower than the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, while capital expenditure remained moderate. As a result, free cash flow was negative, reflecting a cash conversion that weakened from the prior quarter.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, with operating cash flow shifting from positive to negative. Versus the same quarter one year earlier, revenue was lower, operating cash flow was weaker, and free cash flow turned negative.
Monitor the timing of vendor payments and the normalization of working capital, as highlighted in the filing context.