Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter ended December 31, 2024, free cash flow remained negative and widened versus both the prior quarter and the same quarter last year, driven by higher capital expenditure relative to operating cash flow. The free cash flow margin weakened sequentially and year over year.
- Operating cash flow rose from the previous quarter but was slightly above the year-ago level, while capital expenditure increased more significantly, resulting in a larger free cash flow deficit. The cash conversion weakened as higher investment outpaced cash generation.
- Compared to the prior quarter, revenue was lower while operating cash flow improved, but capital expenditure rose, causing free cash flow to worsen. Versus the same quarter last year, revenue was higher, but capital expenditure also increased, and free cash flow declined further.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$250.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
-7.9%
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 | $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% |
| 2024-12-31 | $3.2B | $1.0B | $1.3B | -$250.0M | -7.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -95.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 40.7% | 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 year-ago quarter, exceeding operating cash flow growth and widening the free cash flow deficit.
Higher capital spending is the main observable factor behind the deteriorating free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose from the previous quarter but was slightly above the year-ago level, while capital expenditure increased more significantly, resulting in a larger free cash flow deficit. The cash conversion weakened as higher investment outpaced cash generation.
Compared to the prior quarter, revenue was lower while operating cash flow improved, but capital expenditure rose, causing free cash flow to worsen. Versus the same quarter last year, revenue was higher, but capital expenditure also increased, and free cash flow declined further.
Monitor the trend in capital expenditure as its growth continues to pressure free cash flow.