Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by a notable improvement in operating cash flow. Revenue remained nearly stable compared to the prior quarter but was lower than the same quarter last year.
- Revenue held steady, while operating cash flow rose sharply, leading to a positive free cash flow after capital expenditure. The free cash flow margin improved from negative to positive, reflecting stronger cash conversion.
- Compared to the prior quarter, operating cash flow and free cash flow both improved, with free cash flow shifting from negative to positive. Versus the same quarter a year ago, revenue was lower and operating cash flow decreased, while capital expenditure data for the prior year is not available.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
$113.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$836.0M
Cash generated by operations before capital spending.
CapEx
$723.0M
Capital spending and related asset purchases.
FCF margin
1.0%
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 | $10.7B | $1.7B | n/a | n/a | n/a |
| 2023-12-31 | $10.6B | $1.7B | n/a | n/a | n/a |
| 2024-03-31 | $10.8B | $464.0M | $714.0M | -$250.0M | -2.3% |
| 2024-06-30 | $10.9B | $836.0M | $723.0M | $113.0M | 1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 25.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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 Improvement
Operating cash flow increased significantly from the prior quarter, more than offsetting a similar level of capital expenditure and turning free cash flow positive.
This improvement was the primary factor behind the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue held steady, while operating cash flow rose sharply, leading to a positive free cash flow after capital expenditure. The free cash flow margin improved from negative to positive, reflecting stronger cash conversion.
Compared to the prior quarter, operating cash flow and free cash flow both improved, with free cash flow shifting from negative to positive. Versus the same quarter a year ago, revenue was lower and operating cash flow decreased, while capital expenditure data for the prior year is not available.
Monitor the level of capital expenditure relative to operating cash flow, as it consumed a substantial portion of cash generated.