Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow declined from the prior quarter, while capital expenditure increased, resulting in negative free cash flow. Compared to the same quarter last year, free cash flow improved as operating cash flow grew more than capital expenditure.
- Operating cash flow as a proportion of revenue weakened from the prior quarter but improved from the year-ago quarter. The free cash flow margin turned negative in the current quarter, reflecting higher capital expenditure relative to operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was slightly higher, and free cash flow improved from a larger negative to a smaller negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$833.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$576.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$2.7B
Capital spending and related asset purchases.
FCF margin
-9.1%
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 | $6.6B | $1.3B | $1.8B | -$459.0M | -6.9% |
| 2024-06-30 | $6.5B | $2.7B | $2.1B | $563.0M | 8.7% |
| 2024-09-30 | $7.3B | $3.6B | $2.3B | $1.3B | 17.9% |
| 2024-12-31 | $6.3B | $2.2B | $2.7B | -$576.0M | -9.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -107.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 43.4% | 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.
Capital Expenditure Increase
Capital expenditure rose compared to both the prior quarter and the year-ago quarter, while operating cash flow declined sequentially. This combination was the strongest observable factor behind the shift to negative free cash flow.
Higher capital expenditure relative to operating cash flow drove free cash flow from positive in the prior quarter to negative in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue weakened from the prior quarter but improved from the year-ago quarter. The free cash flow margin turned negative in the current quarter, reflecting higher capital expenditure relative to operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was slightly higher, and free cash flow improved from a larger negative to a smaller negative.
Monitor the trend in capital expenditure relative to operating cash flow, as the current quarter's higher spending contributed to negative free cash flow.