Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter but was lower than the same quarter last year. Free cash flow turned negative, driven by operating cash flow that was significantly lower than both comparison periods.
- Operating cash flow was a small fraction of revenue, resulting in a negative free cash flow margin. Capital expenditure was higher than the prior quarter but lower than a year ago, yet the drop in operating cash flow overwhelmed any benefit from reduced spending.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both weakened sharply, and the free cash flow margin turned from positive to negative. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, though the margin decline was less severe.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$83.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$31.0M
Cash generated by operations before capital spending.
CapEx
$114.0M
Capital spending and related asset purchases.
FCF margin
-1.2%
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 | $6.7B | $241.0M | $105.0M | $136.0M | 2.0% |
| 2024-03-31 | $7.4B | $267.0M | $69.0M | $198.0M | 2.7% |
| 2024-06-30 | $6.5B | $1.1B | $103.0M | $953.0M | 14.7% |
| 2024-09-30 | $7.1B | $31.0M | $114.0M | -$83.0M | -1.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 10.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.8B | 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 Decline
Operating cash flow dropped substantially from both the prior quarter and the year-ago quarter, despite revenue being higher than the prior quarter. This decline is the strongest observable driver of the negative free cash flow.
The weakened cash conversion from revenue to operating cash flow directly caused free cash flow to turn negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was a small fraction of revenue, resulting in a negative free cash flow margin. Capital expenditure was higher than the prior quarter but lower than a year ago, yet the drop in operating cash flow overwhelmed any benefit from reduced spending.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both weakened sharply, and the free cash flow margin turned from positive to negative. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, though the margin decline was less severe.
Monitor whether operating cash flow recovers toward historical levels, as its current level is the primary factor behind the negative free cash flow.