Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned deeply negative this quarter as capital expenditure far exceeded operating cash flow, reversing the positive cash generation seen in the prior quarter. Compared to the same quarter last year, the cash deficit widened despite a moderate increase in revenue.
- Operating cash flow remained stable relative to the prior quarter, but capital expenditure more than quintupled, causing free cash flow to swing from positive to negative. Revenue was higher sequentially, yet the free cash flow margin deteriorated sharply.
- Compared to the immediate prior quarter, revenue increased, operating cash flow was stable, and capital expenditure surged, resulting in a large negative free cash flow versus a positive result. Versus the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure increased, and the free cash flow deficit widened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$624.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$3.8B
Capital spending and related asset purchases.
FCF margin
-75.5%
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 | $3.3B | $1.2B | $544.0M | $690.0M | 20.7% |
| 2024-06-30 | $2.8B | $1.3B | $579.0M | $700.0M | 24.6% |
| 2024-09-30 | $3.0B | $1.2B | $682.0M | $561.0M | 18.5% |
| 2024-12-31 | $3.4B | $1.2B | $3.8B | -$2.6B | -75.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -529.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 111.2% | 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 Surge
Capital expenditure increased substantially from both the prior quarter and the year-ago quarter, becoming the largest negative factor in free cash flow. Operating cash flow did not keep pace, causing free cash flow to turn deeply negative.
The sharp rise in capital expenditure overwhelmed stable operating cash flow, resulting in a significant free cash outflow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow remained stable relative to the prior quarter, but capital expenditure more than quintupled, causing free cash flow to swing from positive to negative. Revenue was higher sequentially, yet the free cash flow margin deteriorated sharply.
Compared to the immediate prior quarter, revenue increased, operating cash flow was stable, and capital expenditure surged, resulting in a large negative free cash flow versus a positive result. Versus the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure increased, and the free cash flow deficit widened.
Capital expenditure level and its trajectory relative to operating cash flow, given the pronounced shift in free cash flow this quarter.