Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and the same quarter last year. Free cash flow was negative but improved from both the preceding quarter and the year-ago period, driven by lower capital expenditure and higher operating cash flow.
- Operating cash flow was lower than the prior quarter but slightly higher than a year ago. Capital expenditure was slightly higher than the prior quarter but notably lower than a year ago, resulting in a free cash flow margin that improved from both comparison periods.
- Compared to the prior quarter, revenue was lower, operating cash flow was lower, capital expenditure was slightly higher, and free cash flow was less negative. Compared to the same quarter last year, revenue was stable, operating cash flow was slightly higher, capital expenditure was lower, and free cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$973.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$294.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$340.0M
Cash generated by operations before capital spending.
CapEx
$634.7M
Capital spending and related asset purchases.
FCF margin
-28.2%
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 | $1.4B | $399.2M | $760.2M | -$361.0M | -26.1% |
| 2024-03-31 | $1.6B | $456.2M | $589.5M | -$133.3M | -8.1% |
| 2024-06-30 | $1.1B | $445.5M | $629.8M | -$184.3M | -17.5% |
| 2024-09-30 | $1.0B | $340.0M | $634.7M | -$294.7M | -28.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -343.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 60.7% | 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.
Capital Expenditure Reduction
Capital expenditure was lower compared to the same quarter last year, which was the strongest observable driver of the improvement in free cash flow. Operating cash flow was slightly higher year over year, providing additional support.
The lower capital expenditure directly reduced the cash outflow, narrowing the negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but slightly higher than a year ago. Capital expenditure was slightly higher than the prior quarter but notably lower than a year ago, resulting in a free cash flow margin that improved from both comparison periods.
Compared to the prior quarter, revenue was lower, operating cash flow was lower, capital expenditure was slightly higher, and free cash flow was less negative. Compared to the same quarter last year, revenue was stable, operating cash flow was slightly higher, capital expenditure was lower, and free cash flow was less negative.
Monitor the trend in capital expenditure relative to operating cash flow, as the gap between them continues to drive negative free cash flow.