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 improved versus the prior quarter, but free cash flow remained deeply negative due to capital expenditure exceeding operating cash flow. Compared with the same quarter a year ago, the free cash flow deficit narrowed, and the margin improved.
- Operating cash flow of over a billion dollars was more than offset by capital expenditure of over two billion dollars, resulting in negative free cash flow and a negative free cash flow margin. The conversion from revenue to cash was insufficient to fund the high level of capital spending.
- Revenue and operating cash flow were higher than the preceding quarter, while capital expenditure also increased. Free cash flow improved slightly versus the prior quarter and improved more noticeably versus the same quarter one year ago, with both the deficit and margin narrowing.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$2.5B
Capital spending and related asset purchases.
FCF margin
-35.4%
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 | $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% |
| 2024-12-31 | $3.1B | $1.4B | $2.5B | -$1.1B | -35.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -160.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 79.9% | 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 outpacing operating cash flow
Capital expenditure was the strongest observable driver, exceeding operating cash flow in all periods shown. This resulted in persistent negative free cash flow.
Free cash flow remained negative for the quarter even though operating cash flow improved sequentially and year-over-year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of over a billion dollars was more than offset by capital expenditure of over two billion dollars, resulting in negative free cash flow and a negative free cash flow margin. The conversion from revenue to cash was insufficient to fund the high level of capital spending.
Revenue and operating cash flow were higher than the preceding quarter, while capital expenditure also increased. Free cash flow improved slightly versus the prior quarter and improved more noticeably versus the same quarter one year ago, with both the deficit and margin narrowing.
Monitor the magnitude of capital expenditure relative to operating cash flow, as it remained the primary factor sustaining negative free cash flow.