Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow and free cash flow turned negative, resulting in a weakened free cash flow margin compared to both periods.
- Despite higher revenue, operating cash flow was deeply negative, which drove free cash flow to a large negative figure and a negative margin. Capital expenditure was slightly higher than the prior quarter but lower than a year ago.
- Compared to the prior quarter, operating cash flow and free cash flow shifted from positive to negative, and the margin weakened sharply. Versus the same quarter last year, both cash flow measures were lower and the margin turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$14.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$7.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$7.4B
Cash generated by operations before capital spending.
CapEx
$249.0M
Capital spending and related asset purchases.
FCF margin
-225.1%
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 | $3.1B | -$844.0M | $230.0M | -$1.1B | -34.2% |
| 2024-06-30 | $3.2B | -$7.6B | $213.0M | -$7.9B | -246.2% |
| 2024-09-30 | $3.3B | $2.7B | $234.0M | $2.5B | 75.9% |
| 2024-12-31 | $3.4B | -$7.4B | $249.0M | -$7.7B | -225.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -980.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.3% | 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.
Negative Operating Cash Flow
Operating cash flow turned deeply negative this quarter, which was the primary factor behind the negative free cash flow and margin. This contrasts with positive operating cash flow in both comparison periods.
The negative operating cash flow drove free cash flow to a large deficit and a negative margin, a significant weakening from prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was deeply negative, which drove free cash flow to a large negative figure and a negative margin. Capital expenditure was slightly higher than the prior quarter but lower than a year ago.
Compared to the prior quarter, operating cash flow and free cash flow shifted from positive to negative, and the margin weakened sharply. Versus the same quarter last year, both cash flow measures were lower and the margin turned from positive to negative.
Monitor the magnitude of negative operating cash flow in the next quarter to assess whether this is a recurring pattern.