Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially and year over year. Free cash flow turned negative from positive compared to the prior quarter, and was slightly more negative than the same quarter last year.
- Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure increased relative to both periods, resulting in negative free cash flow and a weakened cash conversion margin.
- Compared to the prior quarter, revenue improved but operating cash flow declined and capital spending grew, leading to a negative swing in free cash flow. Versus the same quarter last year, both revenue and operating cash flow were higher, but increased capital expenditure kept free cash flow negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$229.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$775.0M
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
-6.1%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $3.1B | $958.0M | $1.1B | -$132.0M | -4.2% |
| 2024-03-31 | $3.3B | -$40.0M | $790.0M | -$830.0M | -25.3% |
| 2024-06-30 | $3.3B | $1.1B | $942.0M | $170.0M | 5.2% |
| 2024-09-30 | $3.7B | $775.0M | $1.0B | -$229.0M | -6.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -54.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Growth
Capital expenditure increased from both the prior quarter and the same quarter last year, growing faster than operating cash flow.
This higher capital spending was the main contributor to the negative free cash flow for 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 prior quarter but higher than a year ago. Capital expenditure increased relative to both periods, resulting in negative free cash flow and a weakened cash conversion margin.
Compared to the prior quarter, revenue improved but operating cash flow declined and capital spending grew, leading to a negative swing in free cash flow. Versus the same quarter last year, both revenue and operating cash flow were higher, but increased capital expenditure kept free cash flow negative.
Monitor the trajectory of capital expenditure in relation to operating cash flow.