Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative but improved significantly compared to both the prior quarter and the same quarter last year, driven by a narrower operating cash outflow. Revenue increased from the preceding quarter but declined from a year earlier.
- Operating cash flow was negative but less so than in the prior quarter, while capital expenditure was slightly higher. The resulting free cash flow deficit narrowed, and the free cash flow margin improved from negative levels in both comparison periods.
- Compared to the immediately preceding quarter, revenue was higher and operating cash flow was less negative, leading to a smaller free cash flow deficit and a better margin. Versus the same quarter one year ago, revenue was lower, but operating cash flow and free cash flow were both less negative, resulting in an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$7.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$664.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$112.0M
Cash generated by operations before capital spending.
CapEx
$552.0M
Capital spending and related asset purchases.
FCF margin
-13.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $5.0B | -$3.2B | $687.0M | -$3.9B | -77.4% |
| 2024-03-31 | $5.3B | -$723.0M | $738.0M | -$1.5B | -27.8% |
| 2024-06-30 | $4.4B | -$613.0M | $546.0M | -$1.2B | -26.3% |
| 2024-09-30 | $4.8B | -$112.0M | $552.0M | -$664.0M | -13.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -55.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.6% | 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 Improvement
Operating cash flow was significantly less negative than in the prior quarter and the year-ago quarter, reducing the overall cash outflow from operations. This improvement, despite a slight increase in capital expenditure, narrowed the free cash flow deficit.
The reduced operating cash outflow was the primary factor behind the improvement in free cash flow margin and the smaller free cash flow deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative but less so than in the prior quarter, while capital expenditure was slightly higher. The resulting free cash flow deficit narrowed, and the free cash flow margin improved from negative levels in both comparison periods.
Compared to the immediately preceding quarter, revenue was higher and operating cash flow was less negative, leading to a smaller free cash flow deficit and a better margin. Versus the same quarter one year ago, revenue was lower, but operating cash flow and free cash flow were both less negative, resulting in an improved margin.
Monitor capital expenditure levels, as they remained elevated while operating cash flow was still negative, affecting the sustainability of cash conversion.