Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter, with operating cash flow also negative, while capital expenditure was lower than the prior quarter. Compared to the same quarter last year, free cash flow improved, though still negative.
- Revenue was higher than the prior quarter, but operating cash flow turned negative, resulting in a negative free cash flow margin. The conversion from revenue to cash was weaker than the previous quarter but improved relative to the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow weakened from positive to negative, driven by a swing in operating cash flow. Versus the same quarter one year earlier, free cash flow improved, as the negative margin narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$662.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$879.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$720.9M
Cash generated by operations before capital spending.
CapEx
$158.1M
Capital spending and related asset purchases.
FCF margin
-11.5%
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 | $5.8B | $608.4M | $133.7M | $474.6M | 8.2% |
| 2024-03-31 | $3.8B | $988.9M | $134.1M | $854.8M | 22.5% |
| 2024-06-30 | $6.0B | $412.1M | $199.6M | $212.4M | 3.5% |
| 2024-09-30 | $7.7B | -$720.9M | $158.1M | -$879.0M | -11.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -194.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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 reversal
Operating cash flow shifted from positive in the prior quarter to negative in the current quarter, while capital expenditure decreased. This reversal drove free cash flow from positive to negative.
The negative free cash flow margin in the current quarter contrasts with the positive margin in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, but operating cash flow turned negative, resulting in a negative free cash flow margin. The conversion from revenue to cash was weaker than the previous quarter but improved relative to the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow weakened from positive to negative, driven by a swing in operating cash flow. Versus the same quarter one year earlier, free cash flow improved, as the negative margin narrowed.
The restatement of prior period financial statements, as noted in the filing, may affect comparability of reported metrics.