Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative this quarter, driven by a sharp decline in operating cash flow relative to revenue. Capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin.
- Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow was positive but significantly lower than the year-ago level, while capital expenditure remained elevated, producing negative free cash flow and a weakened margin.
- Compared to the immediately preceding quarter, free cash flow improved from a larger negative figure to a smaller negative figure, driven by a swing from negative to positive operating cash flow. Versus the same quarter one year earlier, free cash flow weakened substantially, turning from a large positive to a negative figure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$44.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$85.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$132.0M
Cash generated by operations before capital spending.
CapEx
$217.0M
Capital spending and related asset purchases.
FCF margin
-1.7%
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 | $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% |
| 2024-12-31 | $5.1B | $132.0M | $217.0M | -$85.0M | -1.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -3.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.4B | 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 Decline
Operating cash flow was positive this quarter but fell sharply from the year-ago quarter, while revenue was higher. This divergence is the strongest observable driver of the negative free cash flow.
The weakened cash conversion from revenue to operating cash flow directly contributed to the negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow was positive but significantly lower than the year-ago level, while capital expenditure remained elevated, producing negative free cash flow and a weakened margin.
Compared to the immediately preceding quarter, free cash flow improved from a larger negative figure to a smaller negative figure, driven by a swing from negative to positive operating cash flow. Versus the same quarter one year earlier, free cash flow weakened substantially, turning from a large positive to a negative figure.
Monitor the relationship between operating cash flow and capital expenditure, as capital expenditure exceeded operating cash flow this quarter.