Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher sequentially and versus a year ago. Capital expenditure remained stable, resulting in a much smaller free cash flow deficit and a significantly improved free cash flow margin.
- Operating cash flow increased while capital expenditure was nearly unchanged, narrowing the gap between cash generated and capital investment. The free cash flow margin moved closer to breakeven from a negative position.
- Compared to the prior quarter, revenue and operating cash flow rose while capital expenditure held steady; free cash flow improved from a larger deficit to a near-zero balance. Versus the same quarter a year earlier, revenue and operating cash flow were higher, capital expenditure was lower, and the free cash flow deficit narrowed substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$6.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$1.7B
Capital spending and related asset purchases.
FCF margin
-0.1%
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 | $5.4B | $1.4B | $1.9B | -$457.0M | -8.5% |
| 2024-03-31 | $6.0B | $992.0M | $1.8B | -$775.0M | -12.8% |
| 2024-06-30 | $5.4B | $1.5B | $1.7B | -$237.0M | -4.4% |
| 2024-09-30 | $6.2B | $1.7B | $1.7B | -$6.0M | -0.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -0.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 27.5% | 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 strength
The increase in operating cash flow was the primary factor that reduced the free cash flow shortfall, as capital expenditure stayed relatively flat. Higher revenue accompanied this improvement.
The free cash flow margin improved from negative to nearly zero, reflecting a significantly stronger conversion of revenue into free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased while capital expenditure was nearly unchanged, narrowing the gap between cash generated and capital investment. The free cash flow margin moved closer to breakeven from a negative position.
Compared to the prior quarter, revenue and operating cash flow rose while capital expenditure held steady; free cash flow improved from a larger deficit to a near-zero balance. Versus the same quarter a year earlier, revenue and operating cash flow were higher, capital expenditure was lower, and the free cash flow deficit narrowed substantially.
Monitor whether operating cash flow can continue to sustain the current level of capital expenditure while maintaining the improved free cash flow position.