Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the prior quarter but lower than the same quarter one year earlier. Operating cash flow declined sharply, resulting in a larger negative free cash flow and a weaker margin.
- Revenue remained relatively stable compared to both the prior quarter and the year-ago period, but operating cash flow decreased significantly. Capital expenditure was higher than the prior quarter but lower than the year-ago period, and the combination produced a more negative free cash flow and a weaker free cash flow margin.
- Operating cash flow and free cash flow were lower than both the prior quarter and the same quarter one year earlier. Capital expenditure was higher than the prior quarter but lower than the year-ago period, while revenue was higher than the prior quarter but lower than the year-ago period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$292.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$298.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$45.6M
Cash generated by operations before capital spending.
CapEx
$344.3M
Capital spending and related asset purchases.
FCF margin
-7.5%
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 | $4.0B | $451.3M | $519.6M | -$68.4M | -1.7% |
| 2024-06-30 | $4.0B | $479.7M | $347.3M | $132.4M | 3.3% |
| 2024-09-30 | $3.9B | $276.2M | $333.7M | -$57.5M | -1.5% |
| 2024-12-31 | $4.0B | $45.6M | $344.3M | -$298.7M | -7.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -87.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.7% | 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.
Weakened Operating Cash Flow
Operating cash flow decreased markedly from the prior quarter and the year-ago period, while revenue was relatively stable. This drove a significant deterioration in free cash flow and margin.
The lower operating cash flow was the primary factor behind the larger negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained relatively stable compared to both the prior quarter and the year-ago period, but operating cash flow decreased significantly. Capital expenditure was higher than the prior quarter but lower than the year-ago period, and the combination produced a more negative free cash flow and a weaker free cash flow margin.
Operating cash flow and free cash flow were lower than both the prior quarter and the same quarter one year earlier. Capital expenditure was higher than the prior quarter but lower than the year-ago period, while revenue was higher than the prior quarter but lower than the year-ago period.
Monitor the trajectory of operating cash flow given its substantial decline from both the prior quarter and the year-ago period.