Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue in the current quarter was higher than the previous quarter and similar to the same quarter a year earlier. Operating cash flow remained negative, leading to a negative free cash flow margin, though the margin improved compared to the previous quarter due to the revenue increase.
- Cash conversion was negative as operating cash flow was lower than revenue, and capital expenditure added to the cash outflow. Free cash flow was negative, resulting in a negative free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was more negative, capital expenditure was lower, and free cash flow was more negative, but the free cash flow margin improved because the revenue base was larger. Compared to the same quarter one year earlier, revenue was similar, operating cash flow and free cash flow were similar, and the free cash flow margin was similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.6B
Cash generated by operations before capital spending.
CapEx
$151.0M
Capital spending and related asset purchases.
FCF margin
-92.2%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $2.8B | $622.0M | $220.0M | $402.0M | 14.3% |
| 2024-03-31 | $167.0M | -$989.0M | $196.0M | -$1.2B | -709.6% |
| 2024-06-30 | $241.0M | -$1.3B | $182.0M | -$1.5B | -604.1% |
| 2024-09-30 | $1.9B | -$1.6B | $151.0M | -$1.7B | -92.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -13207.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.1% | 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.
Revenue Increase
Revenue was substantially higher than the previous quarter, while remaining near the level of the same quarter a year earlier. This increase was the primary observable factor behind the improvement in free cash flow margin.
The higher revenue drove an improvement in free cash flow margin compared to the prior quarter, despite operating cash flow being more negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion was negative as operating cash flow was lower than revenue, and capital expenditure added to the cash outflow. Free cash flow was negative, resulting in a negative free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was more negative, capital expenditure was lower, and free cash flow was more negative, but the free cash flow margin improved because the revenue base was larger. Compared to the same quarter one year earlier, revenue was similar, operating cash flow and free cash flow were similar, and the free cash flow margin was similar.
Monitor the trend in operating cash flow, as it has remained negative across all comparable periods.