Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative for the quarter, though the deficit narrowed compared to both the prior quarter and the same quarter last year. Operating cash flow improved sequentially, while capital expenditure decreased relative to both comparison periods.
- Revenue increased from the prior quarter, and operating cash flow rose, but capital expenditure remained elevated relative to operating cash flow, resulting in a negative free cash flow margin. The margin improved from the prior quarter and from a year ago, indicating a less severe cash conversion gap.
- Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow was less negative. Versus the same quarter last year, revenue was slightly higher, operating cash flow was lower, 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
-$891.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$145.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$623.0M
Cash generated by operations before capital spending.
CapEx
$768.0M
Capital spending and related asset purchases.
FCF margin
-5.5%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $2.6B | $710.0M | $965.0M | -$255.0M | -9.8% |
| 2024-03-31 | $2.8B | $661.0M | $797.0M | -$136.0M | -4.9% |
| 2024-06-30 | $2.4B | $482.0M | $837.0M | -$355.0M | -14.7% |
| 2024-09-30 | $2.6B | $623.0M | $768.0M | -$145.0M | -5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -27.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 29.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower Capital Expenditure
Capital expenditure decreased from both the prior quarter and the same quarter last year, which directly reduced the cash outflow and narrowed the free cash flow deficit.
This was the strongest observable driver of the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow rose, but capital expenditure remained elevated relative to operating cash flow, resulting in a negative free cash flow margin. The margin improved from the prior quarter and from a year ago, indicating a less severe cash conversion gap.
Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow was less negative. Versus the same quarter last year, revenue was slightly higher, operating cash flow was lower, capital expenditure was lower, and free cash flow was less negative.
Monitor whether capital expenditure continues to decline relative to operating cash flow, as this was the primary factor in the improved free cash flow.