Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow narrowed sharply as operating cash flow declined and capital expenditure rose versus the same quarter last year. Revenue was lower sequentially while the cash conversion rate weakened compared to both the prior quarter and the year-ago period.
- Revenue in the current quarter was lower than the preceding quarter and also below the same quarter last year. Operating cash flow declined compared to the year-ago quarter and was slightly higher than the prior quarter, but capital expenditure increased, resulting in free cash flow and free cash flow margin that weakened relative to both periods.
- Revenue was lower than both the immediately preceding quarter and the same quarter one year earlier. Free cash flow margin declined from the prior quarter, and the year-ago quarter lacked capital expenditure data for a full margin comparison.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$26.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$47.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$814.0M
Cash generated by operations before capital spending.
CapEx
$767.0M
Capital spending and related asset purchases.
FCF margin
0.5%
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 | $10.8B | $464.0M | $714.0M | -$250.0M | -2.3% |
| 2024-06-30 | $10.9B | $836.0M | $723.0M | $113.0M | 1.0% |
| 2024-09-30 | $10.9B | $800.0M | $736.0M | $64.0M | 0.6% |
| 2024-12-31 | $10.4B | $814.0M | $767.0M | $47.0M | 0.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 146.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Reduced operating cash flow
Operating cash flow decreased substantially from the same quarter a year earlier and only modestly improved sequentially. This decline, combined with higher capital expenditure, drove free cash flow to a minimal margin.
The combination of lower operating cash flow and higher capital expenditure compressed free cash flow to the lowest level relative to revenue in the quarters compared.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue in the current quarter was lower than the preceding quarter and also below the same quarter last year. Operating cash flow declined compared to the year-ago quarter and was slightly higher than the prior quarter, but capital expenditure increased, resulting in free cash flow and free cash flow margin that weakened relative to both periods.
Revenue was lower than both the immediately preceding quarter and the same quarter one year earlier. Free cash flow margin declined from the prior quarter, and the year-ago quarter lacked capital expenditure data for a full margin comparison.
Capital expenditure levels should be monitored as they rose while free cash flow remained minimal.