Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, as operating cash flow improved significantly while capital expenditure decreased. The free cash flow margin moved from negative to a slightly positive level.
- Revenue was stable compared with the prior quarter and slightly higher than a year ago. Operating cash flow improved substantially from the previous quarter and was also higher than the same quarter last year, while capital expenditure was lower than both comparable periods. The result was a positive free cash flow and a free cash flow margin that turned from negative to positive.
- Compared with the immediately preceding quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow also improved from negative to positive, with operating cash flow higher and capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$16.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$476.0M
Cash generated by operations before capital spending.
CapEx
$460.0M
Capital spending and related asset purchases.
FCF margin
0.2%
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 | $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% |
| 2024-12-31 | $6.9B | $476.0M | $460.0M | $16.0M | 0.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 6.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $812.0M | 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 rose substantially from the prior quarter and was also higher than the year-ago quarter, while capital expenditure declined. This combination allowed free cash flow to turn positive.
The improvement in operating cash flow was the primary factor behind the swing to positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared with the prior quarter and slightly higher than a year ago. Operating cash flow improved substantially from the previous quarter and was also higher than the same quarter last year, while capital expenditure was lower than both comparable periods. The result was a positive free cash flow and a free cash flow margin that turned from negative to positive.
Compared with the immediately preceding quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow also improved from negative to positive, with operating cash flow higher and capital expenditure lower.
Monitor whether operating cash flow can sustain its improved level, given that the free cash flow margin remains near zero.