Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared with both the prior quarter and the same quarter last year, but operating cash flow was lower and capital expenditure was substantially higher, resulting in negative free cash flow. The free cash flow margin weakened sharply from the preceding quarter and also declined from the year-ago level.
- Despite higher revenue, operating cash flow fell, while capital expenditure rose, converting revenue into a negative free cash flow and a deeply negative margin.
- Compared with the preceding quarter, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow turned from positive to negative. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$154.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$382.0M
Cash generated by operations before capital spending.
CapEx
$536.0M
Capital spending and related asset purchases.
FCF margin
-7.7%
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 | $1.1B | $552.0M | $421.0M | $131.0M | 12.1% |
| 2024-06-30 | $505.0M | $209.0M | $302.0M | -$93.0M | -18.4% |
| 2024-09-30 | $648.0M | $422.0M | $298.0M | $124.0M | 19.1% |
| 2024-12-31 | $2.0B | $382.0M | $536.0M | -$154.0M | -7.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 38.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | 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 markedly compared with both the prior quarter and the year-ago quarter, outpacing operating cash flow and driving free cash flow negative.
This was the strongest factor pulling free cash flow downward this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow fell, while capital expenditure rose, converting revenue into a negative free cash flow and a deeply negative margin.
Compared with the preceding quarter, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow turned from positive to negative. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was weaker.
Capital expenditure as a proportion of operating cash flow, given its sharp increase this quarter.