Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to both the prior quarter and the same quarter last year. However, operating cash flow turned negative, leading to a negative free cash flow margin.
- Operating cash flow was negative, meaning cash conversion from revenue was unfavorable. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, yet the negative operating cash flow resulted in a negative free cash flow and margin.
- Compared to the immediately preceding quarter, revenue was higher while operating cash flow and free cash flow were lower. The same pattern held versus the same quarter one year earlier, with revenue higher but cash flows lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$638.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$2.7B
Cash generated by operations before capital spending.
CapEx
$105.9M
Capital spending and related asset purchases.
FCF margin
-3.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-09-30 | $79.1B | $1.0B | $182.3M | $818.1M | 1.0% |
| 2024-12-31 | $81.5B | -$2.7B | $105.9M | -$2.8B | -3.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -578.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | 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 reversal
Operating cash flow moved from positive in both the prior quarter and the year-ago quarter to negative in the current quarter. This change was the primary factor behind the negative free cash flow.
It caused free cash flow to become negative and the free cash flow margin to weaken significantly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, meaning cash conversion from revenue was unfavorable. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, yet the negative operating cash flow resulted in a negative free cash flow and margin.
Compared to the immediately preceding quarter, revenue was higher while operating cash flow and free cash flow were lower. The same pattern held versus the same quarter one year earlier, with revenue higher but cash flows lower.
Monitor the trajectory of operating cash flow, as it shifted from positive to negative this quarter.