Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year, resulting in positive free cash flow and a higher free cash flow margin. The shift from negative free cash flow in the prior quarter to positive free cash flow in the current quarter was the most notable change.
- Operating cash flow was substantially higher than capital expenditure, leading to a free cash flow margin that was positive and improved relative to both the prior quarter and the year-ago quarter. The conversion from revenue to free cash flow strengthened compared to the prior period.
- Compared to the immediately preceding quarter, revenue increased, operating cash flow turned from negative to positive, capital expenditure decreased, and free cash flow turned from negative to positive. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$75.0M
Capital spending and related asset purchases.
FCF margin
2.2%
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 | $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% |
| 2024-09-30 | $93.7B | $2.1B | $75.0M | $2.0B | 2.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 840.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | 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 improved from negative in the prior quarter to positive in the current quarter, and was higher than the year-ago quarter. This was the strongest observable driver of the free cash flow improvement.
The positive swing in operating cash flow directly enabled the company to generate positive free cash flow and a higher margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, leading to a free cash flow margin that was positive and improved relative to both the prior quarter and the year-ago quarter. The conversion from revenue to free cash flow strengthened compared to the prior period.
Compared to the immediately preceding quarter, revenue increased, operating cash flow turned from negative to positive, capital expenditure decreased, and free cash flow turned from negative to positive. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was stable.
Monitor whether operating cash flow can sustain its positive level in the next quarter, given the prior quarter's negative figure.