Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter produced positive free cash flow with a meaningfully improved margin compared to the year-ago quarter. Cash conversion strengthened from the prior quarter's heavy operating cash outflow.
- Revenue was lower than both comparable periods, but operating cash flow turned strongly positive, more than offsetting higher capital expenditure and delivering positive free cash flow. The free cash flow margin expanded versus the year-ago quarter.
- Compared to the prior quarter, free cash flow swung from a substantial deficit to a surplus, driven by a large improvement in operating cash flow. Versus the same quarter last year, the free cash flow margin improved even though absolute free cash flow was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$303.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$825.0M
Cash generated by operations before capital spending.
CapEx
$522.0M
Capital spending and related asset purchases.
FCF margin
31.4%
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 | $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% |
| 2024-12-31 | $966.0M | $825.0M | $522.0M | $303.0M | 31.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -27.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 54.0% | 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 turnaround
Operating cash flow improved substantially from a large outflow in the prior quarter to a significant inflow, which was the primary factor behind the swing to positive free cash flow despite higher capital spending.
Sustained positive operating cash flow is essential to maintain free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both comparable periods, but operating cash flow turned strongly positive, more than offsetting higher capital expenditure and delivering positive free cash flow. The free cash flow margin expanded versus the year-ago quarter.
Compared to the prior quarter, free cash flow swung from a substantial deficit to a surplus, driven by a large improvement in operating cash flow. Versus the same quarter last year, the free cash flow margin improved even though absolute free cash flow was slightly lower.
Monitor whether operating cash flow can sustain its positive level as revenue continues to decline.