Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative this quarter, driven by operating cash flow that was lower than capital expenditure. Revenue was higher than the prior quarter but lower than the same quarter last year.
- Operating cash flow was lower than capital expenditure, resulting in a negative free cash flow and a negative free cash flow margin. Revenue was higher than the prior quarter but lower than the year-ago quarter.
- Compared to the prior quarter, operating cash flow decreased and capital expenditure increased, turning free cash flow from positive to negative. Compared to the same quarter last year, operating cash flow improved and capital expenditure was stable, resulting in a less negative free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$896.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$2.8B
Capital spending and related asset purchases.
FCF margin
-13.5%
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 | $5.9B | $2.3B | $2.6B | -$377.0M | -6.4% |
| 2024-06-30 | $6.0B | $711.0M | $2.3B | -$1.6B | -26.5% |
| 2024-09-30 | $5.9B | $3.1B | $2.6B | $526.0M | 8.9% |
| 2024-12-31 | $6.6B | $1.9B | $2.8B | -$896.0M | -13.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -132.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 42.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$52.6B | 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 relative to operating cash flow
Capital expenditure was higher than operating cash flow, leading to negative free cash flow. This pattern weakened compared to the prior quarter when operating cash flow covered capital expenditure.
The gap between capital expenditure and operating cash flow drove the negative free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than capital expenditure, resulting in a negative free cash flow and a negative free cash flow margin. Revenue was higher than the prior quarter but lower than the year-ago quarter.
Compared to the prior quarter, operating cash flow decreased and capital expenditure increased, turning free cash flow from positive to negative. Compared to the same quarter last year, operating cash flow improved and capital expenditure was stable, resulting in a less negative free cash flow.
Monitor the relationship between operating cash flow and capital expenditure, as capital expenditure exceeded operating cash flow this quarter.