Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned deeply negative this quarter, driven by a large operating cash outflow despite stable revenue. The margin shifted from positive in the prior quarter and year-ago period to a substantial negative figure.
- Revenue was unchanged from the prior quarter, but operating cash flow swung from a large inflow to a large outflow, causing free cash flow to turn negative. Capital expenditure increased slightly, yet the primary driver of the cash conversion decline was the operating cash flow reversal.
- Compared to the prior quarter, free cash flow weakened sharply from positive to negative, while revenue was stable. Versus the same quarter one year earlier, free cash flow also deteriorated significantly, as the year-ago period had a large positive free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$587.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$2.6B
Cash generated by operations before capital spending.
CapEx
$40.7M
Capital spending and related asset purchases.
FCF margin
-218.9%
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 | $1.1B | -$1.5B | $14.3M | -$1.5B | -128.3% |
| 2024-06-30 | $1.2B | $3.0B | $20.8M | $3.0B | 254.7% |
| 2024-09-30 | $1.2B | $611.1M | $25.7M | $585.4M | 48.9% |
| 2024-12-31 | $1.2B | -$2.6B | $40.7M | -$2.7B | -218.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -587.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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 Reversal
Operating cash flow shifted from a large inflow in the prior quarter and year-ago period to a large outflow this quarter, while revenue remained essentially flat. This reversal was the strongest observable driver of the negative free cash flow.
The operating cash flow swing overwhelmed the modest increase in capital expenditure, resulting in a free cash flow margin that turned deeply negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow swung from a large inflow to a large outflow, causing free cash flow to turn negative. Capital expenditure increased slightly, yet the primary driver of the cash conversion decline was the operating cash flow reversal.
Compared to the prior quarter, free cash flow weakened sharply from positive to negative, while revenue was stable. Versus the same quarter one year earlier, free cash flow also deteriorated significantly, as the year-ago period had a large positive free cash flow and margin.
Monitor whether operating cash flow returns to positive levels in the next quarter, as its large negative swing was the main factor behind the free cash flow deficit.