Understand cash generation quality and how management allocates capital.
Free cash flow was $-1.25B in the latest quarter (212.2% decrease YoY). FCF margin is -12.9%. Shares outstanding increased by 23.0% year-over-year, indicating dilution (potentially from stock compensation or capital raises). Free cash flow is the lifeblood of a business — it funds dividends, buybacks, debt reduction, and reinvestment without relying on external capital.
Free cash flow, earnings quality, and capital allocation