Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative in the current quarter, with a margin that improved from the prior quarter but weakened compared to the same quarter last year. Revenue and operating cash flow were higher than the previous quarter but lower than a year ago, while capital expenditure was relatively stable.
- Operating cash flow exceeded capital expenditure by a smaller margin than a year ago, resulting in negative free cash flow. The free cash flow margin was negative but improved sequentially.
- Compared to the immediately preceding quarter, free cash flow improved as operating cash flow increased while capital expenditure held steady. Versus the same quarter one year earlier, free cash flow weakened due to lower operating cash flow and slightly higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$913.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$1.9B
Capital spending and related asset purchases.
FCF margin
-35.5%
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 | $3.2B | $1.1B | $2.3B | -$1.2B | -38.9% |
| 2024-03-31 | $3.7B | $1.9B | $1.9B | -$82.0M | -2.2% |
| 2024-06-30 | $2.5B | $669.0M | $1.9B | -$1.2B | -49.4% |
| 2024-09-30 | $2.6B | $1.0B | $1.9B | -$913.0M | -35.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -140.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 75.3% | 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.
Sequential operating cash flow improvement
Operating cash flow was higher than the prior quarter, while capital expenditure was unchanged, leading to an improvement in free cash flow.
This improvement reduced the free cash flow deficit compared to the previous quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a smaller margin than a year ago, resulting in negative free cash flow. The free cash flow margin was negative but improved sequentially.
Compared to the immediately preceding quarter, free cash flow improved as operating cash flow increased while capital expenditure held steady. Versus the same quarter one year earlier, free cash flow weakened due to lower operating cash flow and slightly higher capital expenditure.
Monitor the trend in capital expenditure relative to operating cash flow, as it remains a significant factor in free cash flow generation.