Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased, but operating cash flow improved significantly from the prior quarter, turning free cash flow positive. However, versus the same quarter last year, free cash flow and margin weakened substantially due to lower operating cash flow and higher capital expenditure.
- Revenue declined, yet operating cash flow rose sharply from the prior quarter, leading to positive free cash flow. Capital expenditure increased, and free cash flow margin improved from negative to positive but remained low compared to the year-ago period.
- Compared to the prior quarter, operating cash flow increased while revenue decreased, resulting in a notable improvement in free cash flow from negative to positive. Versus the same quarter last year, operating cash flow was lower and capital expenditure was higher, causing a substantial decline in free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$432.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$138.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$759.9M
Cash generated by operations before capital spending.
CapEx
$621.4M
Capital spending and related asset purchases.
FCF margin
3.2%
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 | $4.2B | $864.6M | $514.9M | $349.7M | 8.3% |
| 2024-03-31 | $4.7B | $355.2M | $374.3M | -$19.1M | -0.4% |
| 2024-06-30 | $4.6B | $382.6M | $419.2M | -$36.6M | -0.8% |
| 2024-09-30 | $4.3B | $759.9M | $621.4M | $138.5M | 3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 43.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.7B | 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 rebounded sharply from the prior quarter, more than offsetting the rise in capital expenditure and turning free cash flow positive.
This improvement was the primary factor behind the positive free cash flow, despite lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined, yet operating cash flow rose sharply from the prior quarter, leading to positive free cash flow. Capital expenditure increased, and free cash flow margin improved from negative to positive but remained low compared to the year-ago period.
Compared to the prior quarter, operating cash flow increased while revenue decreased, resulting in a notable improvement in free cash flow from negative to positive. Versus the same quarter last year, operating cash flow was lower and capital expenditure was higher, causing a substantial decline in free cash flow and margin.
Monitor the trajectory of capital expenditure given its significant increase both sequentially and year-over-year, as it continues to pressure free cash flow.