Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was negative and capital expenditure increased, resulting in negative free cash flow with a weakened margin. Revenue was higher than the prior quarter but lower than the same quarter last year.
- Despite revenue being higher than the previous quarter, operating cash flow was still deeply negative, and capital expenditure rose, producing negative free cash flow and a free cash flow margin that remained in negative territory.
- Compared with the prior quarter, free cash flow improved (was less negative) due to a smaller operating cash outflow and higher revenue, though capital expenditure increased. Versus the same quarter last year, free cash flow weakened sharply, driven by a swing from positive to negative operating cash flow and higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$7.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.3B
Cash generated by operations before capital spending.
CapEx
$611.0M
Capital spending and related asset purchases.
FCF margin
-11.0%
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 | $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% |
| 2024-09-30 | $17.8B | -$1.3B | $611.0M | -$2.0B | -11.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 31.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$47.4B | 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
Operating cash flow moved from slightly positive in the year-ago quarter to a significant outflow this quarter, which was the strongest observable driver of the free cash flow decline. Revenue alone could not offset the cash outflow.
The large negative operating cash flow pulled free cash flow deeply into negative territory despite higher sequential revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite revenue being higher than the previous quarter, operating cash flow was still deeply negative, and capital expenditure rose, producing negative free cash flow and a free cash flow margin that remained in negative territory.
Compared with the prior quarter, free cash flow improved (was less negative) due to a smaller operating cash outflow and higher revenue, though capital expenditure increased. Versus the same quarter last year, free cash flow weakened sharply, driven by a swing from positive to negative operating cash flow and higher capital expenditure.
Monitor the trajectory of operating cash flow, as it turned deeply negative in the current quarter.