Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow turned negative, resulting in a weakened free cash flow margin.
- Despite higher revenue, operating cash flow was negative, leading to negative free cash flow and a negative free cash flow margin. Capital expenditure was higher than a year ago but lower than the prior quarter.
- Compared to the prior quarter, operating cash flow and free cash flow shifted from positive to negative, and the free cash flow margin weakened. Versus the same quarter last year, operating cash flow and free cash flow were more negative, and the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.4B
Cash generated by operations before capital spending.
CapEx
$167.0M
Capital spending and related asset purchases.
FCF margin
-2.0%
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 | $77.2B | $965.0M | $75.0M | $890.0M | 1.2% |
| 2023-12-31 | $80.9B | $254.0M | $90.0M | $164.0M | 0.2% |
| 2024-03-31 | $76.4B | $4.1B | $188.0M | $4.0B | 5.2% |
| 2024-06-30 | $79.3B | -$1.4B | $167.0M | -$1.5B | -2.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -169.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | 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 was negative this quarter, a reversal from the prior quarter's positive level and a larger negative compared to the same quarter last year. This directly drove the negative free cash flow.
The negative operating cash flow was the primary factor behind the weakened free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative, leading to negative free cash flow and a negative free cash flow margin. Capital expenditure was higher than a year ago but lower than the prior quarter.
Compared to the prior quarter, operating cash flow and free cash flow shifted from positive to negative, and the free cash flow margin weakened. Versus the same quarter last year, operating cash flow and free cash flow were more negative, and the free cash flow margin was lower.
Monitor whether operating cash flow returns to positive levels in the coming quarter.