Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow remained positive but capital expenditure exceeded it, resulting in negative free cash flow. The free cash flow margin weakened compared to both the prior quarter and the same quarter last year.
- Revenue was stable relative to the prior quarter, while operating cash flow declined and capital expenditure increased, causing free cash flow to turn negative. The free cash flow margin contracted as a result.
- Compared to the prior quarter, operating cash flow was lower and capital expenditure was higher, flipping free cash flow from positive to negative. Compared to the same quarter last year, operating cash flow was slightly lower while capital expenditure increased, resulting in a weaker free cash flow position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$67.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$729.0M
Cash generated by operations before capital spending.
CapEx
$796.3M
Capital spending and related asset purchases.
FCF margin
-3.6%
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 | $2.2B | $480.0M | n/a | n/a | n/a |
| 2024-03-31 | $2.7B | $863.6M | $444.5M | $419.1M | 15.6% |
| 2024-06-30 | $1.8B | $1.0B | $693.9M | $343.5M | 19.4% |
| 2024-09-30 | $1.9B | $729.0M | $796.3M | -$67.3M | -3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -28.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 42.7% | 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 increased compared to both the prior quarter and the same quarter last year, while operating cash flow declined relative to the prior quarter and was slightly lower than a year ago. This combination drove free cash flow to a negative level.
The negative free cash flow reflects a period of elevated investment that exceeded internally generated cash from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the prior quarter, while operating cash flow declined and capital expenditure increased, causing free cash flow to turn negative. The free cash flow margin contracted as a result.
Compared to the prior quarter, operating cash flow was lower and capital expenditure was higher, flipping free cash flow from positive to negative. Compared to the same quarter last year, operating cash flow was slightly lower while capital expenditure increased, resulting in a weaker free cash flow position.
Monitor the trend of capital expenditure relative to operating cash flow, as the gap has widened and contributed to negative free cash flow.