Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but operating cash flow turned negative, resulting in negative free cash flow and margin. Cash conversion weakened significantly relative to both periods.
- Revenue was higher than both the prior quarter and the year-ago quarter, while operating cash flow shifted from positive to negative, producing a negative free cash flow and margin. Capital expenditure was lower than the prior quarter but higher than the same quarter last year.
- Compared to the prior quarter, operating cash flow and free cash flow moved from positive to negative, while revenue was higher. Compared to the same quarter last year, operating cash flow and free cash flow were lower, despite revenue being higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$245.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$978.0M
Cash generated by operations before capital spending.
CapEx
$153.0M
Capital spending and related asset purchases.
FCF margin
-3.1%
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 | $35.3B | $217.0M | $223.0M | -$6.0M | -0.0% |
| 2024-03-31 | $36.3B | -$456.0M | $151.0M | -$607.0M | -1.7% |
| 2024-06-30 | $36.0B | $2.2B | $186.0M | $2.0B | 5.5% |
| 2024-09-30 | $36.9B | -$978.0M | $153.0M | -$1.1B | -3.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -158.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | 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 turned from positive in the prior quarter and the year-ago quarter to negative in the current quarter, which was the primary driver of the negative free cash flow and margin.
The decline in operating cash flow caused free cash flow to become negative and margin to worsen.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, while operating cash flow shifted from positive to negative, producing a negative free cash flow and margin. Capital expenditure was lower than the prior quarter but higher than the same quarter last year.
Compared to the prior quarter, operating cash flow and free cash flow moved from positive to negative, while revenue was higher. Compared to the same quarter last year, operating cash flow and free cash flow were lower, despite revenue being higher.
Monitor the timing of pharmacy rebate remittances and risk adjustment payments, as noted in the filing as factors affecting operating cash flows.