Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow margin weakened substantially compared to both the prior quarter and the same quarter last year, as free cash flow declined. The decline was driven by lower operating cash flow combined with higher capital expenditure.
- Revenue was slightly higher than the prior quarter but much lower than the same quarter last year. Operating cash flow decreased, while capital expenditure increased, resulting in a lower free cash flow and a compressed free cash flow margin.
- Compared with the prior quarter, revenue improved but operating cash flow, free cash flow, and margin all weakened. Versus the same quarter last year, all metrics were lower, with the most pronounced declines in free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$106.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$468.0M
Cash generated by operations before capital spending.
CapEx
$362.0M
Capital spending and related asset purchases.
FCF margin
1.7%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $6.4B | $992.0M | $441.0M | $551.0M | 8.6% |
| 2023-12-31 | $23.0B | $2.6B | $439.0M | $2.1B | 9.3% |
| 2024-03-31 | $5.9B | $700.0M | $328.0M | $372.0M | 6.3% |
| 2024-06-30 | $6.2B | $468.0M | $362.0M | $106.0M | 1.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 21.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Decline in Operating Cash Flow
Operating cash flow decreased compared to both the prior quarter and the same quarter last year, while capital expenditure increased, significantly reducing free cash flow and margin.
The lower operating cash flow constrained free cash flow generation, compressing the margin to a low single-digit percentage.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter but much lower than the same quarter last year. Operating cash flow decreased, while capital expenditure increased, resulting in a lower free cash flow and a compressed free cash flow margin.
Compared with the prior quarter, revenue improved but operating cash flow, free cash flow, and margin all weakened. Versus the same quarter last year, all metrics were lower, with the most pronounced declines in free cash flow and margin.
Monitor working capital changes, as the filing context notes that such changes reduced cash in the six-month period, though the reduction was smaller than in the prior year.