Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash from operations exceeded revenue, but capital spending surpassed cash from operations, resulting in negative free cash flow. Compared to the prior quarter, free cash flow improved, though it weakened relative to the same quarter last year.
- Revenue was positive, and cash from operations was higher than revenue, indicating strong cash conversion. However, capital expenditure was larger than operating cash flow, turning free cash flow negative.
- Compared to the preceding quarter, revenue was higher and free cash flow less negative, but the free cash flow margin shifted from positive to negative. Versus the same quarter one year earlier, revenue was higher and operating cash flow was higher, yet capital expenditure grew more, making free cash flow more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$840.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$168.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$1.4B
Capital spending and related asset purchases.
FCF margin
-19.2%
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 | $3.7B | $1.4B | $519.0M | $895.0M | 24.0% |
| 2024-03-31 | $3.5B | $1.0B | $653.0M | $376.0M | 10.8% |
| 2024-06-30 | -$1.8B | $1.3B | $1.5B | -$263.0M | 14.7% |
| 2024-09-30 | $874.0M | $1.2B | $1.4B | -$168.0M | -19.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -23.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 157.0% | 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 Exceeds Operating Cash Flow
Capital expenditure was higher than cash from operations in the current quarter, causing free cash flow to be negative. Although operating cash flow improved compared to the prior year, capital spending increased even more.
The gap between capital spending and operating cash flow is the primary factor behind the negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was positive, and cash from operations was higher than revenue, indicating strong cash conversion. However, capital expenditure was larger than operating cash flow, turning free cash flow negative.
Compared to the preceding quarter, revenue was higher and free cash flow less negative, but the free cash flow margin shifted from positive to negative. Versus the same quarter one year earlier, revenue was higher and operating cash flow was higher, yet capital expenditure grew more, making free cash flow more negative.
Monitor the level of capital spending relative to cash from operations, as it directly drives free cash flow.