Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative and weaker than the preceding quarter, driven by negative operating cash flow. Revenue increased but was lower than the same quarter one year earlier.
- Despite higher revenue, operating cash flow remained negative, and capital expenditure was modest. The resulting free cash flow margin was negative, indicating cash conversion lagged revenue generation.
- Free cash flow and operating cash flow improved compared to the immediate prior quarter, but both weakened versus the same quarter one year earlier when they were positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$482.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$495.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$396.0M
Cash generated by operations before capital spending.
CapEx
$99.0M
Capital spending and related asset purchases.
FCF margin
-0.9%
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 | $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% |
| 2024-12-31 | $55.3B | -$396.0M | $99.0M | -$495.0M | -0.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -123.8% | 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.
Negative Operating Cash Flow
Operating cash flow was negative, and the filing text notes that cash used in operating activities was impacted by the unwinding of negative net working capital and normal payment timing.
The negative operating cash flow directly drove the negative free cash flow result.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow remained negative, and capital expenditure was modest. The resulting free cash flow margin was negative, indicating cash conversion lagged revenue generation.
Free cash flow and operating cash flow improved compared to the immediate prior quarter, but both weakened versus the same quarter one year earlier when they were positive.
Monitor the trend in operating cash flow, which remained negative and was a key factor in the negative free cash flow.