Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose relative to both the prior quarter and the same quarter last year, while operating cash flow turned deeply negative, producing a large negative free cash flow and a weakened margin. The cash conversion pattern for this quarter is similar to the year-ago period but sharply different from the preceding quarter.
- Revenue was higher, but operating cash flow became negative and capital expenditure was slightly lower than a year ago, resulting in negative free cash flow and a negative free cash flow margin that was slightly worse year over year.
- Compared to the immediately preceding quarter, revenue improved while operating cash flow and free cash flow both weakened from positive to negative, and the margin reversed from positive to negative. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was slightly more negative, free cash flow was slightly more negative, and the margin was slightly more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.5B
Cash generated by operations before capital spending.
CapEx
$194.0M
Capital spending and related asset purchases.
FCF margin
-41.6%
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 | $2.9B | -$238.0M | $177.0M | -$415.0M | -14.4% |
| 2024-03-31 | $2.9B | $2.9B | $177.0M | $2.7B | 93.5% |
| 2024-06-30 | $3.6B | $1.5B | $194.0M | $1.3B | 36.7% |
| 2024-09-30 | $4.1B | -$1.5B | $194.0M | -$1.7B | -41.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -246.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Negative operating cash flow
Operating cash flow was negative this quarter, in contrast to the positive level in the prior quarter and similar to the negative level a year ago. This is the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly drove free cash flow to a large negative amount, despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, but operating cash flow became negative and capital expenditure was slightly lower than a year ago, resulting in negative free cash flow and a negative free cash flow margin that was slightly worse year over year.
Compared to the immediately preceding quarter, revenue improved while operating cash flow and free cash flow both weakened from positive to negative, and the margin reversed from positive to negative. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was slightly more negative, free cash flow was slightly more negative, and the margin was slightly more negative.
Monitor whether operating cash flow can return to a positive level in the next quarter, as the current quarter shows a large outflow.