Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, revenue and operating cash flow declined from the prior quarter, while capital expenditure remained stable, leading to negative free cash flow. Compared with the same quarter one year earlier, revenue and operating cash flow were higher, and the free cash flow deficit narrowed.
- Revenue was lower than the preceding quarter, and operating cash flow decreased more sharply, resulting in a negative free cash flow margin. Capital expenditure was unchanged, so the conversion of revenue into cash weakened.
- Compared with the prior quarter, free cash flow turned from positive to negative, driven by lower revenue and operating cash flow. Versus the year-ago quarter, free cash flow improved as revenue and operating cash flow were higher, though still negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$693.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$326.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
-8.2%
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 | $4.1B | $1.0B | $1.3B | -$236.0M | -5.8% |
| 2024-06-30 | $4.3B | $329.0M | $1.4B | -$1.1B | -25.2% |
| 2024-09-30 | $5.2B | $2.5B | $1.5B | $961.0M | 18.5% |
| 2024-12-31 | $4.0B | $1.2B | $1.5B | -$326.0M | -8.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -95.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 37.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$35.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weakened cash conversion
Operating cash flow declined more than proportionally to the drop in revenue, causing free cash flow to turn negative despite stable capital expenditure.
The weaker cash conversion from revenue to operating cash flow was the primary factor behind the negative free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter, and operating cash flow decreased more sharply, resulting in a negative free cash flow margin. Capital expenditure was unchanged, so the conversion of revenue into cash weakened.
Compared with the prior quarter, free cash flow turned from positive to negative, driven by lower revenue and operating cash flow. Versus the year-ago quarter, free cash flow improved as revenue and operating cash flow were higher, though still negative.
Monitor the relationship between operating cash flow and revenue, as the current quarter showed a weaker conversion rate.