Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative for the quarter, driven by an operating cash outflow and ongoing capital spending. Cash and cash equivalents declined from the end of the prior quarter, consistent with the cash outflow.
- Revenue was lower than the prior quarter, and operating cash flow turned negative, resulting in a larger free cash outflow. Capital expenditure decreased but was not enough to offset the operating cash deficit.
- Compared to the immediately preceding quarter, free cash flow shifted from positive to negative and the margin weakened. Relative to the same quarter one year earlier, free cash flow was slightly more negative, while operating cash flow improved from a larger outflow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$811.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$670.0M
Cash generated by operations before capital spending.
CapEx
$141.0M
Capital spending and related asset purchases.
FCF margin
-24.1%
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 | $4.3B | $1.3B | $232.0M | $1.1B | 26.0% |
| 2024-03-31 | $3.9B | $534.0M | $175.0M | $359.0M | 9.1% |
| 2024-06-30 | $3.9B | $889.0M | $217.0M | $672.0M | 17.4% |
| 2024-09-30 | $3.4B | -$670.0M | $141.0M | -$811.0M | -24.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 519.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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.
Operating Cash Flow Reversal
Operating cash flow turned negative this quarter, a decline from the prior quarter's positive figure and a shift from the year-ago quarter's negative level. This reversal was the primary factor behind the negative free cash flow.
The negative operating cash flow was the main driver of the free cash flow deficit, and its sustainability is a key focus for future periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, and operating cash flow turned negative, resulting in a larger free cash outflow. Capital expenditure decreased but was not enough to offset the operating cash deficit.
Compared to the immediately preceding quarter, free cash flow shifted from positive to negative and the margin weakened. Relative to the same quarter one year earlier, free cash flow was slightly more negative, while operating cash flow improved from a larger outflow.
Monitor the trajectory of operating cash flow, as it swung from positive to negative and remains a key determinant of overall cash generation.