Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year, while operating cash flow remained negative but improved significantly from the year-ago period. Free cash flow was negative, with a margin that narrowed year-over-year but widened sequentially.
- Operating cash flow was negative and insufficient to cover capital expenditure, resulting in negative free cash flow. The free cash flow margin reflects the gap between revenue and cash generation from operations.
- Compared to the prior quarter, revenue was lower, operating cash flow was more negative, capital expenditure was higher, and free cash flow was more negative with a weaker margin. Versus the same quarter a year ago, revenue was lower, operating cash flow was less negative, capital expenditure was slightly higher, and free cash flow was less negative with an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$5.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.0B
Cash generated by operations before capital spending.
CapEx
$729.0M
Capital spending and related asset purchases.
FCF margin
-38.6%
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 | $5.3B | -$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% |
| 2024-12-31 | $4.5B | -$1.0B | $729.0M | -$1.7B | -38.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -204.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.5B | 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 vs. year ago
The negative operating cash flow was substantially smaller than the same quarter a year earlier, which was the primary factor behind the narrower free cash flow deficit. However, the sequential deterioration in operating cash flow from the prior quarter warrants attention.
The year-over-year improvement in operating cash flow helped reduce the free cash outflow, even as revenue declined.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative and insufficient to cover capital expenditure, resulting in negative free cash flow. The free cash flow margin reflects the gap between revenue and cash generation from operations.
Compared to the prior quarter, revenue was lower, operating cash flow was more negative, capital expenditure was higher, and free cash flow was more negative with a weaker margin. Versus the same quarter a year ago, revenue was lower, operating cash flow was less negative, capital expenditure was slightly higher, and free cash flow was less negative with an improved margin.
Monitor the trend in operating cash flow, as it turned more negative sequentially despite a year-over-year improvement.