Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned slightly positive this quarter, a meaningful improvement from negative levels in both the prior quarter and the same quarter last year. Revenue declined sequentially but rose from the year-ago period, while operating cash flow shifted from negative to positive.
- Revenue for the quarter was lower than the preceding quarter but higher than the same quarter one year earlier. Operating cash flow turned positive, leading to a small free cash flow and a free cash flow margin near zero, after negative margins in both comparison periods. Capital expenditure remained relatively stable across all three periods.
- Compared with the immediately preceding quarter, revenue was lower and operating cash flow improved from a large negative to a positive figure, resulting in a free cash flow improvement from negative to slightly positive. Compared with the same quarter one year earlier, revenue was higher, operating cash flow improved from negative to positive, and free cash flow also turned from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$7.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$198.0M
Cash generated by operations before capital spending.
CapEx
$191.0M
Capital spending and related asset purchases.
FCF margin
0.2%
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 | $2.9B | $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% |
| 2024-12-31 | $3.2B | $198.0M | $191.0M | $7.0M | 0.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 2.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow turnaround
Operating cash flow shifted from a negative figure in both the prior quarter and the year-ago quarter to a positive figure in the current quarter. This change was the primary observable factor behind the move from negative to slightly positive free cash flow.
The improvement in operating cash flow was the strongest driver of the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue for the quarter was lower than the preceding quarter but higher than the same quarter one year earlier. Operating cash flow turned positive, leading to a small free cash flow and a free cash flow margin near zero, after negative margins in both comparison periods. Capital expenditure remained relatively stable across all three periods.
Compared with the immediately preceding quarter, revenue was lower and operating cash flow improved from a large negative to a positive figure, resulting in a free cash flow improvement from negative to slightly positive. Compared with the same quarter one year earlier, revenue was higher, operating cash flow improved from negative to positive, and free cash flow also turned from negative to positive.
Monitor whether operating cash flow can sustain its positive trajectory given the sequential decline in revenue.