Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter, driven by a large negative swing in operating cash flow relative to revenue. The margin weakened compared with both the prior quarter and the same quarter a year earlier.
- Revenue contracted while operating cash flow turned more negative and capital expenditure decreased, resulting in a more negative free cash flow and a lower free cash flow margin.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow all improved (less negative), while capital expenditure declined. Versus the same quarter a year ago, revenue was lower and operating cash flow was significantly more negative, leading to a weaker free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$7.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$613.0M
Cash generated by operations before capital spending.
CapEx
$546.0M
Capital spending and related asset purchases.
FCF margin
-26.3%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $5.3B | -$993.0M | $399.0M | -$1.4B | -26.2% |
| 2023-12-31 | $5.0B | -$3.2B | $687.0M | -$3.9B | -77.4% |
| 2024-03-31 | $5.3B | -$723.0M | $738.0M | -$1.5B | -27.8% |
| 2024-06-30 | $4.4B | -$613.0M | $546.0M | -$1.2B | -26.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -142.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.4% | 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 Movement
Operating cash flow moved sharply negative in the current quarter relative to the year-ago period, while capital expenditure decreased. This was the strongest observable factor behind the free cash flow decline.
The combination of lower revenue and a more negative operating cash flow widened the free cash flow deficit versus the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue contracted while operating cash flow turned more negative and capital expenditure decreased, resulting in a more negative free cash flow and a lower free cash flow margin.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow all improved (less negative), while capital expenditure declined. Versus the same quarter a year ago, revenue was lower and operating cash flow was significantly more negative, leading to a weaker free cash flow and margin.
Operating cash flow volatility should be monitored given its large swing in the current period relative to both the previous quarter and the year-ago quarter.