Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative, with revenue higher sequentially and from a year ago. The cash conversion was pressured by elevated capital expenditure relative to operating cash flow.
- Operating cash flow improved sequentially but was slightly higher than a year ago, yet capital expenditure increased more sharply, resulting in a wider free cash flow deficit and a weakened margin.
- Compared to the immediate prior quarter, revenue and operating cash flow both improved, but capital expenditure rose substantially, pulling free cash flow more negative. Versus the same quarter one year earlier, revenue was higher and operating cash flow was modestly higher, but capital expenditure increased, causing free cash flow to worsen.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$889.0M
Cash generated by operations before capital spending.
CapEx
$2.0B
Capital spending and related asset purchases.
FCF margin
-51.0%
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 | $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% |
| 2024-12-31 | $2.2B | $889.0M | $2.0B | -$1.1B | -51.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -452.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 91.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.4B | 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 Expansion
Capital expenditure increased markedly from both the prior quarter and the year-ago period, while operating cash flow growth was not sufficient to offset the outlay. This divergence is the strongest observable driver of the weakened free cash flow margin.
The higher capital spending directly expanded the free cash shortfall, making cash conversion less efficient in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved sequentially but was slightly higher than a year ago, yet capital expenditure increased more sharply, resulting in a wider free cash flow deficit and a weakened margin.
Compared to the immediate prior quarter, revenue and operating cash flow both improved, but capital expenditure rose substantially, pulling free cash flow more negative. Versus the same quarter one year earlier, revenue was higher and operating cash flow was modestly higher, but capital expenditure increased, causing free cash flow to worsen.
Monitor the trend in capital expenditure relative to operating cash flow, as its elevated level is the primary observable factor in the sustained negative free cash flow.