Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter and the same quarter last year, but operating cash flow declined sharply, leading to a negative free cash flow. Capital expenditure rose significantly, outweighing the improvement in revenue and operating cash flow compared to a year ago.
- The company's cash conversion weakened as operating cash flow fell while capital expenditure rose, resulting in a free cash flow margin that turned negative from positive in the prior quarter. Compared to the same quarter last year, operating cash flow improved, but the absence of prior-year capital expenditure data prevents a full comparison of free cash flow.
- Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, while capital expenditure increased from the prior quarter, contributing to a free cash flow that weakened sharply from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$502.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$304.0M
Cash generated by operations before capital spending.
CapEx
$806.0M
Capital spending and related asset purchases.
FCF margin
-29.3%
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 | $1.9B | $405.0M | n/a | n/a | n/a |
| 2024-03-31 | $2.1B | $956.0M | $613.0M | $343.0M | 16.0% |
| 2024-06-30 | $1.6B | $707.0M | $681.0M | $26.0M | 1.6% |
| 2024-09-30 | $1.7B | $304.0M | $806.0M | -$502.0M | -29.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -198.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 47.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure increase
Capital expenditure rose from the prior quarter, while operating cash flow declined, resulting in a substantial negative free cash flow. This was the strongest observable factor behind the quarter's cash flow performance.
The combined effect of higher capital spending and lower operating cash flow caused free cash flow to turn from positive to negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company's cash conversion weakened as operating cash flow fell while capital expenditure rose, resulting in a free cash flow margin that turned negative from positive in the prior quarter. Compared to the same quarter last year, operating cash flow improved, but the absence of prior-year capital expenditure data prevents a full comparison of free cash flow.
Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, while capital expenditure increased from the prior quarter, contributing to a free cash flow that weakened sharply from positive to negative.
Monitor the level of capital expenditure relative to operating cash flow, as the gap widened this quarter and drove free cash flow deeply negative.