Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter one year earlier, while operating cash flow improved. Free cash flow remained negative but narrowed versus both the prior quarter and the year-ago quarter.
- Operating cash flow as a proportion of revenue was higher than both the preceding quarter and the same quarter last year. Capital expenditure was lower than the year-ago level, contributing to a less negative free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved, leading to a less negative free cash flow. Versus the same quarter one year earlier, revenue was stable, operating cash flow was higher, and capital expenditure was lower, resulting in a less negative free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$59.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$351.0M
Cash generated by operations before capital spending.
CapEx
$410.0M
Capital spending and related asset purchases.
FCF margin
-5.5%
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 | $961.0M | $245.0M | n/a | n/a | n/a |
| 2024-03-31 | $1.0B | $307.0M | $478.0M | -$171.0M | -16.6% |
| 2024-06-30 | $894.0M | $255.0M | $392.0M | -$137.0M | -15.3% |
| 2024-09-30 | $1.1B | $351.0M | $410.0M | -$59.0M | -5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -20.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 37.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.5B | 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 Improvement
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while revenue was stable year over year. This improvement was the strongest observable driver of the less negative free cash flow.
Higher operating cash flow directly reduced the free cash flow deficit without requiring a change in revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the preceding quarter and the same quarter last year. Capital expenditure was lower than the year-ago level, contributing to a less negative free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved, leading to a less negative free cash flow. Versus the same quarter one year earlier, revenue was stable, operating cash flow was higher, and capital expenditure was lower, resulting in a less negative free cash flow margin.
Monitor whether capital expenditure remains at or below the prior-year level, as it was a key factor in the free cash flow improvement.