Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative and widened due to lower operating cash flow despite a sequential revenue increase. Capital expenditure declined but did not fully offset the reduction in cash from operations.
- Operating cash flow fell while revenue rose, resulting in a weaker cash conversion rate. The gap between operating cash flow and capital expenditure widened, leading to a more negative free cash flow margin.
- Compared to the prior quarter, revenue improved but operating cash flow decreased, causing free cash flow to worsen. Year-over-year, both revenue and operating cash flow were lower, and free cash flow margin declined further.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$15.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.2B
Cash generated by operations before capital spending.
CapEx
$5.8B
Capital spending and related asset purchases.
FCF margin
-18.7%
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 |
|---|---|---|---|---|---|
| 2024-03-30 | $12.7B | -$1.2B | $6.0B | -$7.2B | -56.5% |
| 2024-06-29 | $12.8B | $2.3B | $5.7B | -$3.4B | -26.4% |
| 2024-09-28 | $13.3B | $4.1B | $6.5B | -$2.4B | -18.1% |
| 2024-12-28 | $14.3B | $3.2B | $5.8B | -$2.7B | -18.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 2118.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 40.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$41.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Declining Operating Cash Flow
Operating cash flow decreased sequentially and year-over-year even as revenue rose from the prior quarter, indicating a reduced ability to convert sales into cash.
The decline in operating cash flow was the primary factor behind the wider free cash flow deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell while revenue rose, resulting in a weaker cash conversion rate. The gap between operating cash flow and capital expenditure widened, leading to a more negative free cash flow margin.
Compared to the prior quarter, revenue improved but operating cash flow decreased, causing free cash flow to worsen. Year-over-year, both revenue and operating cash flow were lower, and free cash flow margin declined further.
Monitor whether operating cash flow can improve to align with revenue growth, as capital expenditure reductions alone may not restore positive free cash flow.