Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow turned negative, resulting in a negative free cash flow margin.
- Despite higher revenue, operating cash flow was negative, which drove free cash flow to a negative position. Capital expenditure was higher than both comparison periods, further weighing on free cash flow.
- Compared to the prior quarter, operating cash flow weakened from positive to negative, and free cash flow margin declined sharply. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow both worsened.
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
-$2.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$2.4B
Cash generated by operations before capital spending.
CapEx
$126.0M
Capital spending and related asset purchases.
FCF margin
-2.6%
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 | $76.4B | $4.1B | $188.0M | $4.0B | 5.2% |
| 2024-06-30 | $79.3B | -$1.4B | $167.0M | -$1.5B | -2.0% |
| 2024-09-30 | $93.7B | $2.1B | $75.0M | $2.0B | 2.2% |
| 2024-12-31 | $95.3B | -$2.4B | $126.0M | -$2.5B | -2.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -285.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Negative operating cash flow
Operating cash flow was negative in the current quarter, a significant shift from positive levels in both the prior quarter and the year-ago quarter. This was the primary factor behind the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative, which drove free cash flow to a negative position. Capital expenditure was higher than both comparison periods, further weighing on free cash flow.
Compared to the prior quarter, operating cash flow weakened from positive to negative, and free cash flow margin declined sharply. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow both worsened.
Monitor whether operating cash flow returns to positive levels in the next quarter.