Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter after a negative prior quarter, driven by a significant improvement in operating cash flow. Revenue increased compared to both the prior quarter and the same quarter last year.
- Revenue rose from the prior quarter and the year-ago quarter, while operating cash flow improved from negative to positive, leading to a positive free cash flow. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter, and the free cash flow margin turned positive from a negative prior quarter, matching the year-ago level.
- Compared to the prior quarter, revenue was higher and operating cash flow improved from negative to positive, resulting in a positive free cash flow. Compared to the same quarter last year, revenue was higher and free cash flow was higher, while the free cash flow margin remained stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$613.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$814.0M
Cash generated by operations before capital spending.
CapEx
$201.0M
Capital spending and related asset purchases.
FCF margin
5.1%
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 |
|---|---|---|---|---|---|
| 2023-10-01 | $10.6B | $1.3B | $227.0M | $1.1B | 10.3% |
| 2023-12-31 | $11.7B | $1.2B | $304.0M | $892.0M | 7.6% |
| 2024-03-31 | $10.7B | -$278.0M | $159.0M | -$437.0M | -4.1% |
| 2024-06-30 | $12.0B | $814.0M | $201.0M | $613.0M | 5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.9B | 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 Recovery
Operating cash flow turned from negative in the prior quarter to positive in the current quarter, which was the primary factor behind the swing to positive free cash flow. Revenue also increased compared to both the prior quarter and the year-ago quarter.
The recovery in operating cash flow was the strongest observable driver of the improvement in free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter and the year-ago quarter, while operating cash flow improved from negative to positive, leading to a positive free cash flow. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter, and the free cash flow margin turned positive from a negative prior quarter, matching the year-ago level.
Compared to the prior quarter, revenue was higher and operating cash flow improved from negative to positive, resulting in a positive free cash flow. Compared to the same quarter last year, revenue was higher and free cash flow was higher, while the free cash flow margin remained stable.
Monitor the sustainability of operating cash flow generation after the prior quarter's negative result.