Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable compared to the prior quarter and was higher than the same quarter one year earlier. Operating cash flow improved sequentially but weakened from a year ago, while capital expenditure increased, resulting in negative free cash flow and a lower margin.
- Operating cash flow was lower than capital expenditure, leading to negative free cash flow. The free cash flow margin turned negative, reflecting higher capital spending relative to operating cash generation.
- Compared to the preceding quarter, operating cash flow improved, but capital expenditure was higher, causing free cash flow to be more negative. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow was lower and capital expenditure was higher, turning free cash flow from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$594.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$186.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$431.6M
Cash generated by operations before capital spending.
CapEx
$617.6M
Capital spending and related asset purchases.
FCF margin
-11.8%
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 | $1.5B | $130.0M | $381.1M | -$251.1M | -17.0% |
| 2024-06-30 | $1.5B | $382.2M | $396.8M | -$14.6M | -1.0% |
| 2024-09-30 | $1.6B | $252.9M | $396.1M | -$143.2M | -9.2% |
| 2024-12-31 | $1.6B | $431.6M | $617.6M | -$186.0M | -11.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -176.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 39.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.6B | 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 and Restructuring Costs
Capital expenditure was significantly higher than both the prior quarter and the year-ago quarter, while the company disclosed ongoing restructuring costs under a transformation program. These combined outlays contributed to the negative free cash flow.
Sustained high capital spending and restructuring costs may pressure free cash flow in the near term.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than capital expenditure, leading to negative free cash flow. The free cash flow margin turned negative, reflecting higher capital spending relative to operating cash generation.
Compared to the preceding quarter, operating cash flow improved, but capital expenditure was higher, causing free cash flow to be more negative. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow was lower and capital expenditure was higher, turning free cash flow from positive to negative.
Monitor the magnitude of future restructuring and transformation costs under the ongoing program, as additional expenses are expected in the coming year.