Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved from the prior quarter while capital expenditure increased, resulting in a shift to negative free cash flow. Compared to the same quarter last year, revenue was higher but free cash flow remained near zero.
- Revenue increased relative to the prior quarter, and operating cash flow rose, yet capital expenditure outpaced that cash generation, yielding a negative free cash flow margin contrasted with positive margins in both comparison periods.
- Compared to the immediately preceding quarter, operating cash flow was higher and capital expenditure was higher, reversing free cash flow from positive to negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow was slightly lower, and free cash flow remained minimal after a near-zero position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$183.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$6.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$981.0M
Cash generated by operations before capital spending.
CapEx
$987.0M
Capital spending and related asset purchases.
FCF margin
-0.3%
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 | $2.1B | $598.0M | $707.0M | -$109.0M | -5.1% |
| 2024-06-30 | $2.2B | $912.0M | $648.0M | $264.0M | 12.2% |
| 2024-09-30 | $2.2B | $758.0M | $724.0M | $34.0M | 1.5% |
| 2024-12-31 | $2.3B | $981.0M | $987.0M | -$6.0M | -0.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 42.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 43.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.3B | 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 Intensification
Capital expenditure increased compared to the prior quarter and compared to the same quarter last year, rising above operating cash flow and driving free cash flow negative.
The elevated capital spending fully absorbed operating cash flow, resulting in a negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased relative to the prior quarter, and operating cash flow rose, yet capital expenditure outpaced that cash generation, yielding a negative free cash flow margin contrasted with positive margins in both comparison periods.
Compared to the immediately preceding quarter, operating cash flow was higher and capital expenditure was higher, reversing free cash flow from positive to negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow was slightly lower, and free cash flow remained minimal after a near-zero position.
Monitor whether capital expenditure levels moderate in coming periods relative to operating cash flow generation.