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 was negative, driven by a sharp decline in operating cash flow, while revenue remained relatively stable. Compared to the prior quarter and the same quarter last year, cash conversion weakened significantly.
- Operating cash flow turned negative, resulting in a negative free cash flow margin, despite capital expenditure being lower than the previous quarter. Revenue was slightly lower than the prior quarter but higher than a year ago, yet cash conversion deteriorated markedly.
- Free cash flow and operating cash flow were both lower than the prior quarter and the same quarter last year, while revenue was mixed—slightly lower sequentially but higher year over year. Capital expenditure was lower than the prior quarter but higher than a year ago.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.8B
Cash generated by operations before capital spending.
CapEx
$455.0M
Capital spending and related asset purchases.
FCF margin
-23.3%
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 | $9.6B | $6.8B | $426.0M | $6.3B | 66.3% |
| 2024-03-31 | $9.3B | $5.6B | $396.0M | $5.2B | 55.2% |
| 2024-06-30 | $9.8B | $4.5B | $565.0M | $4.0B | 40.4% |
| 2024-09-30 | $9.7B | -$1.8B | $455.0M | -$2.3B | -23.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -90.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | 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.
Operating Cash Flow Turned Negative
The primary observable driver of the free cash flow decline was operating cash flow shifting from positive to negative, while capital expenditure was not the main factor. Revenue was essentially flat, so the change in cash collections or disbursements appears to be the key variable.
This negative operating cash flow directly caused free cash flow to be negative, a sharp reversal from the previous two quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned negative, resulting in a negative free cash flow margin, despite capital expenditure being lower than the previous quarter. Revenue was slightly lower than the prior quarter but higher than a year ago, yet cash conversion deteriorated markedly.
Free cash flow and operating cash flow were both lower than the prior quarter and the same quarter last year, while revenue was mixed—slightly lower sequentially but higher year over year. Capital expenditure was lower than the prior quarter but higher than a year ago.
Monitor whether operating cash flow returns to positive levels in the coming quarters, given its current negative swing.