Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased versus the prior quarter and the same quarter last year. Free cash flow remained negative but improved significantly from the prior quarter, while free cash flow margin turned less negative compared to both periods.
- Operating cash flow as a share of revenue improved relative to the prior quarter and the year-ago quarter. Capital expenditure rose sequentially and year-over-year, keeping free cash flow negative, though the negative margin narrowed compared to both earlier periods.
- Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was higher (less negative). Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was lower (more negative).
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$705.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$32.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$633.2M
Cash generated by operations before capital spending.
CapEx
$665.8M
Capital spending and related asset purchases.
FCF margin
-1.8%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $991.6M | $373.8M | $531.8M | -$158.0M | -15.9% |
| 2024-03-31 | $951.7M | $347.4M | $517.8M | -$170.4M | -17.9% |
| 2024-06-30 | $1.3B | $189.8M | $534.0M | -$344.2M | -26.3% |
| 2024-09-30 | $1.8B | $633.2M | $665.8M | -$32.7M | -1.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -8.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 37.6% | 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 growth
Operating cash flow increased compared to both the prior quarter and the same quarter a year earlier, providing stronger cash generation from operations.
Higher operating cash flow partly offset the increase in capital expenditure, resulting in a less negative free cash flow margin sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue improved relative to the prior quarter and the year-ago quarter. Capital expenditure rose sequentially and year-over-year, keeping free cash flow negative, though the negative margin narrowed compared to both earlier periods.
Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was higher (less negative). Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was lower (more negative).
Monitor the trend in capital expenditure relative to operating cash flow, as the gap between the two remains a key factor in free cash flow outcomes.