Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned deeply negative this quarter, driven by a large operating cash outflow that far exceeded capital spending. Revenue was stable compared to the prior quarter but significantly higher than a year ago, yet cash conversion weakened sharply.
- Revenue was essentially flat versus the prior quarter, but operating cash flow swung from a large inflow to a large outflow, resulting in a negative free cash flow margin. Compared to the same quarter last year, revenue was higher while operating cash flow and free cash flow both declined substantially.
- Relative to the prior quarter, free cash flow and operating cash flow both weakened markedly, while capital expenditure was slightly lower. Versus the same quarter last year, free cash flow and operating cash flow were significantly lower, despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$969.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$361.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$269.0M
Cash generated by operations before capital spending.
CapEx
$92.0M
Capital spending and related asset purchases.
FCF margin
-6.0%
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 | $4.3B | $1.1B | $222.0M | $840.0M | 19.5% |
| 2024-03-31 | $5.4B | $40.0M | $102.0M | -$62.0M | -1.1% |
| 2024-06-30 | $5.9B | $660.0M | $108.0M | $552.0M | 9.3% |
| 2024-09-30 | $6.0B | -$269.0M | $92.0M | -$361.0M | -6.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -80.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.2B | 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 Swing
Operating cash flow shifted from a positive amount in both the prior quarter and the year-ago quarter to a negative amount this quarter. This change is the strongest observable driver of the free cash flow decline.
The negative operating cash flow more than offset the modest capital expenditure, producing a free cash flow deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was essentially flat versus the prior quarter, but operating cash flow swung from a large inflow to a large outflow, resulting in a negative free cash flow margin. Compared to the same quarter last year, revenue was higher while operating cash flow and free cash flow both declined substantially.
Relative to the prior quarter, free cash flow and operating cash flow both weakened markedly, while capital expenditure was slightly lower. Versus the same quarter last year, free cash flow and operating cash flow were significantly lower, despite higher revenue.
Monitor whether operating cash flow can return to positive levels in the coming quarter, as the current negative swing is the primary driver of the free cash flow deficit.