Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the fourth quarter, free cash flow was negative as capital expenditure exceeded operating cash flow. Revenue was stable compared to the same quarter last year, while operating cash flow improved.
- Operating cash flow was lower than the preceding quarter but higher than a year ago. Capital expenditure increased relative to both periods, resulting in a negative free cash flow margin that weakened from the prior quarter but improved from the year-ago level.
- Compared to the preceding quarter, revenue and operating cash flow were lower, while capital expenditure was higher, turning free cash flow from positive to negative. Versus the same quarter last year, revenue was stable, operating cash flow was higher, and capital expenditure was higher, resulting in a larger negative free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$349.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$193.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$1.6B
Capital spending and related asset purchases.
FCF margin
-7.1%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $2.8B | $521.1M | $961.2M | -$440.1M | -15.7% |
| 2024-06-30 | $3.0B | $1.0B | $1.2B | -$137.8M | -4.7% |
| 2024-09-30 | $3.4B | $1.6B | $1.1B | $421.8M | 12.4% |
| 2024-12-31 | $2.7B | $1.4B | $1.6B | -$193.8M | -7.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -67.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 57.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.1B | 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 Increase
Capital expenditure rose compared to both the prior quarter and the same quarter last year, outpacing operating cash flow and causing free cash flow to turn negative.
The higher capital expenditure was the primary observable factor behind the negative free cash flow in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the preceding quarter but higher than a year ago. Capital expenditure increased relative to both periods, resulting in a negative free cash flow margin that weakened from the prior quarter but improved from the year-ago level.
Compared to the preceding quarter, revenue and operating cash flow were lower, while capital expenditure was higher, turning free cash flow from positive to negative. Versus the same quarter last year, revenue was stable, operating cash flow was higher, and capital expenditure was higher, resulting in a larger negative free cash flow.
Monitor the trend in capital expenditure relative to operating cash flow, as elevated spending has driven free cash flow negative.