Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the previous quarter but increased year over year. Free cash flow remained negative, improving from the prior quarter but weakening compared to the same quarter last year.
- Operating cash flow turned positive sequentially, while capital expenditure increased slightly. Free cash flow margin improved from negative 7.0% to negative 5.9% quarter over quarter, but was lower than the negative 3.5% margin a year ago.
- Compared to the preceding quarter, revenue was lower and operating cash flow shifted from negative to positive, reducing the free cash flow deficit. Versus the same quarter last year, revenue was higher but operating cash flow was significantly lower, resulting in a larger free cash flow shortfall.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$404.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$113.0M
Cash generated by operations before capital spending.
CapEx
$517.0M
Capital spending and related asset purchases.
FCF margin
-5.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $6.8B | $425.0M | $708.0M | -$283.0M | -4.1% |
| 2024-03-31 | $6.3B | -$104.0M | $583.0M | -$687.0M | -10.9% |
| 2024-06-30 | $7.4B | -$23.0M | $494.0M | -$517.0M | -7.0% |
| 2024-09-30 | $6.9B | $113.0M | $517.0M | -$404.0M | -5.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -603.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.5% | 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.
Operating cash flow recovery
Operating cash flow improved from negative to positive sequentially, narrowing the free cash flow deficit. However, it remained substantially below the year-ago level, partly due to labor contract bonuses as noted in the filing.
If operating cash flow sustains, free cash flow may improve; otherwise, the deficit could widen.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned positive sequentially, while capital expenditure increased slightly. Free cash flow margin improved from negative 7.0% to negative 5.9% quarter over quarter, but was lower than the negative 3.5% margin a year ago.
Compared to the preceding quarter, revenue was lower and operating cash flow shifted from negative to positive, reducing the free cash flow deficit. Versus the same quarter last year, revenue was higher but operating cash flow was significantly lower, resulting in a larger free cash flow shortfall.
Monitor whether operating cash flow can remain positive given the prior quarter's negative value and the elevated capital expenditure level.