Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated negative free cash flow in this quarter, as capital expenditure exceeded operating cash flow. Revenue and operating cash flow were lower than the immediate prior quarter but higher than the same quarter one year ago.
- Operating cash flow was insufficient to cover capital expenditure, resulting in a negative free cash flow and a negative free cash flow margin. This indicates a cash conversion gap where investment outlays outpaced cash from operations.
- Compared to the immediately preceding quarter, revenue and operating cash flow both decreased, while the free cash flow deficit widened. Relative to the same quarter one year earlier, revenue and operating cash flow improved, and the free cash flow deficit narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$639.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$92.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$439.5M
Cash generated by operations before capital spending.
CapEx
$531.6M
Capital spending and related asset purchases.
FCF margin
-8.4%
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 | $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% |
| 2024-12-31 | $1.1B | $439.5M | $531.6M | -$92.1M | -8.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 3654.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 48.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.9B | 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 outpaces operating cash flow
Capital expenditure remained elevated and exceeded operating cash flow, which was the strongest observable driver of the negative free cash flow. The free cash flow margin was negative, reflecting this imbalance.
This imbalance directly caused free cash flow to remain in negative territory for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was insufficient to cover capital expenditure, resulting in a negative free cash flow and a negative free cash flow margin. This indicates a cash conversion gap where investment outlays outpaced cash from operations.
Compared to the immediately preceding quarter, revenue and operating cash flow both decreased, while the free cash flow deficit widened. Relative to the same quarter one year earlier, revenue and operating cash flow improved, and the free cash flow deficit narrowed.
Monitor the trend in capital expenditure relative to operating cash flow, as the persistent gap is the primary driver of negative free cash flow.