Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter and roughly stable versus the same quarter last year. Operating cash flow turned negative, resulting in a negative free cash flow margin, a sharp reversal from the positive margins in both comparison periods.
- Despite revenue remaining near prior levels, operating cash flow was negative, which drove free cash flow deeply negative. Capital expenditure was higher than both the prior quarter and the year-ago quarter, further weighing on free cash flow.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow shifted from positive to negative, and free cash flow margin weakened from positive to negative. Versus the same quarter one year earlier, revenue was stable, but operating cash flow and free cash flow both turned from strongly positive to negative, and the margin declined sharply.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.3B
Cash generated by operations before capital spending.
CapEx
$469.0M
Capital spending and related asset purchases.
FCF margin
-14.6%
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 | $10.8B | $2.7B | $851.0M | $1.8B | 16.8% |
| 2024-03-29 | $11.3B | $528.0M | $370.0M | $158.0M | 1.4% |
| 2024-06-28 | $12.4B | $3.6B | $422.0M | $3.2B | 25.6% |
| 2024-09-27 | $11.9B | -$1.3B | $469.0M | -$1.7B | -14.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -60.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | 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.
Negative Operating Cash Flow
Operating cash flow turned negative this quarter, a stark contrast to the positive figures in both the prior quarter and the year-ago quarter. This was the primary factor behind the negative free cash flow and margin.
The negative operating cash flow directly caused free cash flow to be negative, reversing the positive free cash flow seen in both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite revenue remaining near prior levels, operating cash flow was negative, which drove free cash flow deeply negative. Capital expenditure was higher than both the prior quarter and the year-ago quarter, further weighing on free cash flow.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow shifted from positive to negative, and free cash flow margin weakened from positive to negative. Versus the same quarter one year earlier, revenue was stable, but operating cash flow and free cash flow both turned from strongly positive to negative, and the margin declined sharply.
Monitor whether operating cash flow returns to positive levels in the next quarter, as the current negative level is a significant deviation from recent history.