Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was insufficient to cover capital expenditure, resulting in negative free cash flow and a negative margin. Compared with the prior quarter, the deficit narrowed as operating cash flow increased, but the year-ago quarter posted a positive free cash flow.
- Revenue was higher than operating cash flow, and capital expenditure exceeded operating cash flow, producing a negative free cash flow and a negative free cash flow margin.
- Revenue, operating cash flow, and capital expenditure were all higher than the prior quarter, while free cash flow and margin improved from a larger deficit to a smaller one. Compared with the same quarter one year earlier, revenue, operating cash flow, and capital expenditure were lower, and free cash flow shifted from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$726.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.6B
Cash generated by operations before capital spending.
CapEx
$5.3B
Capital spending and related asset purchases.
FCF margin
-1.2%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $61.3B | $10.6B | $4.4B | $6.2B | 10.1% |
| 2024-06-30 | $63.5B | $13.6B | $4.5B | $9.1B | 14.3% |
| 2024-09-30 | $62.0B | $1.8B | $4.7B | -$2.9B | -4.7% |
| 2024-12-31 | $62.9B | $4.6B | $5.3B | -$726.0M | -1.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -3.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.5% | 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 Improvement
Operating cash flow increased from the prior quarter, which was the most significant change among the metrics. This improvement reduced the free cash flow deficit even though capital expenditure also rose.
The higher operating cash flow narrowed the negative free cash flow from the prior quarter, though it remained negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than operating cash flow, and capital expenditure exceeded operating cash flow, producing a negative free cash flow and a negative free cash flow margin.
Revenue, operating cash flow, and capital expenditure were all higher than the prior quarter, while free cash flow and margin improved from a larger deficit to a smaller one. Compared with the same quarter one year earlier, revenue, operating cash flow, and capital expenditure were lower, and free cash flow shifted from positive to negative.
The relationship between capital expenditure and operating cash flow, as capital expenditure continues to exceed operating cash flow.