Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter after a negative prior quarter, driven by a sharp improvement in operating cash flow. The margin strengthened from the preceding quarter but remained below the same quarter a year ago.
- Revenue was relatively stable versus the prior quarter and higher year over year. Operating cash flow swung from negative to positive, funding capital expenditure and generating free cash flow with a positive margin.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow improved from negative to positive, and the margin turned positive. Versus the same quarter one year earlier, all metrics weakened, with free cash flow and margin lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$186.0M
Capital spending and related asset purchases.
FCF margin
5.5%
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 | $35.0B | $1.0B | $136.0M | $885.0M | 2.5% |
| 2023-12-31 | $35.3B | $217.0M | $223.0M | -$6.0M | -0.0% |
| 2024-03-31 | $36.3B | -$456.0M | $151.0M | -$607.0M | -1.7% |
| 2024-06-30 | $36.0B | $2.2B | $186.0M | $2.0B | 5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 173.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$23.0M | 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 recovery
Operating cash flow turned from a negative prior quarter to positive in the current quarter, the strongest observable change among the metrics.
This shift directly drove free cash flow positive and improved the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was relatively stable versus the prior quarter and higher year over year. Operating cash flow swung from negative to positive, funding capital expenditure and generating free cash flow with a positive margin.
Compared with the immediately preceding quarter, operating cash flow and free cash flow improved from negative to positive, and the margin turned positive. Versus the same quarter one year earlier, all metrics weakened, with free cash flow and margin lower.
Monitor whether operating cash flow remains positive in the next quarter, given the swing from the prior period.