Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow turned negative from positive in the prior quarter, but improved from negative a year ago.
- Operating cash flow decreased from the prior quarter, while capital expenditure remained unchanged, resulting in a negative free cash flow margin. Compared to a year ago, operating cash flow increased, narrowing the free cash flow deficit.
- Compared to the prior quarter, revenue and operating cash flow declined, turning free cash flow from positive to negative. Year-over-year, revenue and operating cash flow improved, leading to a smaller free cash flow loss.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$54.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
-0.3%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $14.2B | $545.0M | $1.6B | -$1.1B | -7.4% |
| 2024-03-31 | $13.7B | $2.4B | $1.2B | $1.2B | 8.8% |
| 2024-06-30 | $16.7B | $2.4B | $1.3B | $1.1B | 6.8% |
| 2024-09-30 | $15.7B | $1.3B | $1.3B | -$54.0M | -0.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -4.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.6B | 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 Decline
Operating cash flow decreased significantly from the prior quarter, while capital expenditure held steady. This shift was the primary factor behind the negative free cash flow.
The lower operating cash flow reduced the ability to cover capital expenditures without external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased from the prior quarter, while capital expenditure remained unchanged, resulting in a negative free cash flow margin. Compared to a year ago, operating cash flow increased, narrowing the free cash flow deficit.
Compared to the prior quarter, revenue and operating cash flow declined, turning free cash flow from positive to negative. Year-over-year, revenue and operating cash flow improved, leading to a smaller free cash flow loss.
Monitor the relationship between revenue changes and operating cash flow generation.