Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower compared to the prior quarter and the same quarter last year. Free cash flow was negative and deteriorated from both comparison periods, driven by a significant decline in operating cash flow relative to capital expenditure.
- Operating cash flow was lower than the prior quarter and the year-ago quarter, while capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter. The resulting free cash flow was deeply negative, with a free cash flow margin that weakened from both comparison periods.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was substantially lower, and the negative free cash flow and margin worsened. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow was significantly lower, but free cash flow and margin were worse, despite capital expenditure being lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$708.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$136.0M
Cash generated by operations before capital spending.
CapEx
$844.0M
Capital spending and related asset purchases.
FCF margin
-38.3%
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 | $2.1B | $808.0M | $1.1B | -$270.0M | -12.8% |
| 2024-03-31 | $2.6B | $538.0M | $845.0M | -$307.0M | -11.8% |
| 2024-06-30 | $1.9B | $576.0M | $812.0M | -$236.0M | -12.4% |
| 2024-09-30 | $1.8B | $136.0M | $844.0M | -$708.0M | -38.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -366.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 45.6% | 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 Weakness
The sharp decline in operating cash flow was the strongest observable driver of the free cash flow deterioration. Revenue was stable relative to prior periods, yet cash generated from operations fell markedly, suggesting a breakdown in cash conversion within the quarter.
Without an improvement in operating cash flow, free cash flow will likely remain under pressure given the ongoing capital expenditure program.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and the year-ago quarter, while capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter. The resulting free cash flow was deeply negative, with a free cash flow margin that weakened from both comparison periods.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was substantially lower, and the negative free cash flow and margin worsened. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow was significantly lower, but free cash flow and margin were worse, despite capital expenditure being lower.
Monitor the trajectory of operating cash flow, which was the weakest metric in the current quarter relative to both comparison periods.