Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved markedly versus the prior quarter and the same quarter last year. The free cash flow margin expanded considerably, reflecting higher cash generation relative to revenue.
- Revenue was higher quarter over quarter, and operating cash flow turned positive from negative, leading to positive free cash flow. Capital expenditure remained stable, so the swing in free cash flow was driven primarily by operating cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow shifted from negative to positive, and the free cash flow margin improved from negative to positive. Versus the same quarter one year earlier, all metrics were higher, with free cash flow and margin showing particular strengthening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$117.9M
Capital spending and related asset purchases.
FCF margin
3.2%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $68.9B | $1.8B | $175.5M | $1.7B | 2.4% |
| 2023-12-31 | $72.3B | $885.2M | $74.2M | $810.9M | 1.1% |
| 2024-03-31 | $68.4B | -$878.4M | $112.8M | -$991.2M | -1.4% |
| 2024-06-30 | $74.2B | $2.5B | $117.9M | $2.4B | 3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 488.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | 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 Recovery
Operating cash flow rose substantially from the prior quarter and from the same quarter last year, more than offsetting modestly higher capital expenditure. This recovery was the strongest observable factor behind the improvement in free cash flow and margin.
The conversion of revenue into cash strengthened markedly, lifting free cash flow and margin to their highest levels in the periods presented.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher quarter over quarter, and operating cash flow turned positive from negative, leading to positive free cash flow. Capital expenditure remained stable, so the swing in free cash flow was driven primarily by operating cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow shifted from negative to positive, and the free cash flow margin improved from negative to positive. Versus the same quarter one year earlier, all metrics were higher, with free cash flow and margin showing particular strengthening.
Monitor whether operating cash flow can sustain its positive level in subsequent quarters, given the prior quarter's negative result.