Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow was negative as capital expenditure exceeded operating cash flow, resulting in a negative margin. The filing includes standard risk factors and management discussion, with no specific commentary on the quarter's cash conversion.
- Revenue was lower than the previous quarter, operating cash flow was lower, and capital expenditure was higher, leading to negative free cash flow and a negative margin.
- Compared to the immediately preceding quarter, free cash flow and margin turned from positive to negative. Compared to the same quarter one year earlier, free cash flow and margin improved from a larger deficit.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$24.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$130.0M
Cash generated by operations before capital spending.
CapEx
$154.0M
Capital spending and related asset purchases.
FCF margin
-1.0%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $3.7B | $4.4B | $183.0M | $4.2B | 113.0% |
| 2024-03-31 | $4.5B | -$2.6B | $148.0M | -$2.8B | -61.4% |
| 2024-06-30 | $6.1B | $451.0M | $114.0M | $337.0M | 5.5% |
| 2024-09-30 | $2.3B | $130.0M | $154.0M | -$24.0M | -1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 4.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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.
Capital expenditure exceeding operating cash flow
Capital expenditure was higher than operating cash flow, causing free cash flow to be negative.
This resulted in a negative free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the previous quarter, operating cash flow was lower, and capital expenditure was higher, leading to negative free cash flow and a negative margin.
Compared to the immediately preceding quarter, free cash flow and margin turned from positive to negative. Compared to the same quarter one year earlier, free cash flow and margin improved from a larger deficit.
Monitor the relationship between capital expenditure and operating cash flow, as capital expenditure surpassed operating cash flow in the current quarter.