Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative for the quarter, with operating cash flow insufficient to cover capital expenditure. Revenue was slightly lower than both the prior quarter and the same quarter last year.
- Operating cash flow as a percentage of revenue weakened compared to both the prior quarter and the year-ago quarter, while capital expenditure remained elevated relative to revenue, resulting in a more negative free cash flow margin.
- Compared to the prior quarter, operating cash flow and free cash flow both declined, and the free cash flow margin worsened. Versus the same quarter last year, operating cash flow was lower, but free cash flow improved due to a smaller gap between operating cash flow and capital expenditure.
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
-$611.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$367.0M
Cash generated by operations before capital spending.
CapEx
$978.0M
Capital spending and related asset purchases.
FCF margin
-24.8%
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 | $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% |
| 2024-12-31 | $2.5B | $367.0M | $978.0M | -$611.0M | -24.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -213.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 39.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.0B | 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 outpacing operating cash flow
Capital expenditure was higher than operating cash flow in the current quarter, a reversal from the prior quarter where operating cash flow was closer to covering capital spending. This drove the negative free cash flow.
The elevated capital expenditure relative to operating cash flow is the strongest observable driver of the quarter's 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 as a percentage of revenue weakened compared to both the prior quarter and the year-ago quarter, while capital expenditure remained elevated relative to revenue, resulting in a more negative free cash flow margin.
Compared to the prior quarter, operating cash flow and free cash flow both declined, and the free cash flow margin worsened. Versus the same quarter last year, operating cash flow was lower, but free cash flow improved due to a smaller gap between operating cash flow and capital expenditure.
Monitor the trend in capital expenditure relative to operating cash flow, as the gap widened sequentially and remains a key factor in free cash flow.