Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was negative and the free cash flow margin weakened compared to the prior quarter. Compared to the same quarter last year, operating cash flow shifted from positive to negative, and free cash flow turned from positive to negative.
- Revenue was stable relative to the prior quarter, but operating cash flow was more negative, resulting in a more negative free cash flow and a lower free cash flow margin. Capital expenditure was lower than the prior quarter.
- Compared to the prior quarter, revenue was slightly higher, but operating cash flow and free cash flow were both more negative, and free cash flow margin was lower. Compared to the same quarter one year earlier, revenue was lower, and operating cash flow and free cash flow both weakened from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$5.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$3.9B
Cash generated by operations before capital spending.
CapEx
$404.0M
Capital spending and related asset purchases.
FCF margin
-25.7%
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 | $18.1B | $22.0M | $332.0M | -$310.0M | -1.7% |
| 2023-12-31 | $22.0B | $3.4B | $431.0M | $3.0B | 13.4% |
| 2024-03-31 | $16.6B | -$3.4B | $567.0M | -$3.9B | -23.7% |
| 2024-06-30 | $16.9B | -$3.9B | $404.0M | -$4.3B | -25.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 300.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$46.8B | 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 Deficit
Operating cash flow was negative this quarter, and more negative than both the prior quarter and the same quarter last year. This is the strongest observable driver of the weaker free cash flow.
The negative operating cash flow directly drove free cash flow into a wider deficit this quarter.
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, but operating cash flow was more negative, resulting in a more negative free cash flow and a lower free cash flow margin. Capital expenditure was lower than the prior quarter.
Compared to the prior quarter, revenue was slightly higher, but operating cash flow and free cash flow were both more negative, and free cash flow margin was lower. Compared to the same quarter one year earlier, revenue was lower, and operating cash flow and free cash flow both weakened from positive to negative.
Monitor whether operating cash flow continues to be negative given its widening deficit in the current quarter.