Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Free cash flow remained negative but improved compared to the year-ago quarter, while the free cash flow margin also improved year-over-year.
- Operating cash flow rose relative to the year-ago quarter but fell from the prior quarter. Capital expenditure was stable across all periods, so the change in free cash flow was driven by operating cash flow. The free cash flow margin improved year-over-year but weakened sequentially.
- Compared to the prior quarter, revenue was higher and operating cash flow was lower, leading to a more negative free cash flow and a weaker margin. Versus the same quarter last year, revenue and operating cash flow were both higher, resulting in a less negative free cash flow and an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$515.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$555.6M
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-16.8%
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 | $2.7B | $477.0M | $1.2B | -$734.2M | -27.3% |
| 2024-03-31 | $3.3B | $291.3M | $1.1B | -$858.1M | -25.7% |
| 2024-06-30 | $2.5B | $670.7M | $1.1B | -$400.8M | -15.8% |
| 2024-09-30 | $3.1B | $555.6M | $1.1B | -$515.4M | -16.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 443.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 35.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-Year Cash Flow Improvement
Operating cash flow increased compared to the same quarter last year, which directly reduced the negative free cash flow and improved the free cash flow margin, even as capital expenditure remained unchanged.
This driver supported a stronger cash conversion profile relative to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to the year-ago quarter but fell from the prior quarter. Capital expenditure was stable across all periods, so the change in free cash flow was driven by operating cash flow. The free cash flow margin improved year-over-year but weakened sequentially.
Compared to the prior quarter, revenue was higher and operating cash flow was lower, leading to a more negative free cash flow and a weaker margin. Versus the same quarter last year, revenue and operating cash flow were both higher, resulting in a less negative free cash flow and an improved margin.
Monitor the trajectory of operating cash flow, as it declined sequentially despite higher revenue.