Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year. Free cash flow was more negative than both comparable periods, driven by a larger shortfall between operating cash flow and capital expenditure.
- Operating cash flow remained deeply negative while capital expenditure was sustained, resulting in a free cash flow margin that weakened compared to both the immediate prior quarter and the same quarter one year earlier. Revenue was lower but the cash conversion gap widened.
- Compared to the prior quarter, revenue was lower, operating cash flow was more negative, and free cash flow was more negative. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was similar, capital expenditure was higher, and free cash flow was more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$5.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$876.0M
Cash generated by operations before capital spending.
CapEx
$277.0M
Capital spending and related asset purchases.
FCF margin
-131.9%
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 | $1.3B | -$1.1B | $298.0M | -$1.4B | -106.8% |
| 2024-03-31 | $1.2B | -$1.3B | $254.0M | -$1.5B | -126.5% |
| 2024-06-30 | $1.2B | -$754.0M | $283.0M | -$1.0B | -89.6% |
| 2024-09-30 | $874.0M | -$876.0M | $277.0M | -$1.2B | -131.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.7% | 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 deficit
The strongest observable driver this quarter was the sustained shortfall in operating cash flow, which remained deeply negative even as revenue declined. Capital expenditure was slightly lower than the prior quarter but higher than a year ago, yet free cash flow worsened primarily due to the operating cash flow weakness.
The operating cash flow deficit was the primary factor behind the more negative free cash flow and the weakened conversion of revenue into cash.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow remained deeply negative while capital expenditure was sustained, resulting in a free cash flow margin that weakened compared to both the immediate prior quarter and the same quarter one year earlier. Revenue was lower but the cash conversion gap widened.
Compared to the prior quarter, revenue was lower, operating cash flow was more negative, and free cash flow was more negative. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was similar, capital expenditure was higher, and free cash flow was more negative.
Monitor the trajectory of operating cash flow, as it remained at a deeply negative level despite lower revenue.