Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened compared to both the prior quarter and the same quarter last year. Operating cash flow declined while capital expenditure rose, compressing conversion.
- Revenue was lower than the prior quarter but slightly below the year-ago level. Operating cash flow decreased relative to both periods, and capital expenditure was higher, resulting in a lower free cash flow and a narrower free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin were all lower, while capital expenditure was higher. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow and free cash flow were lower, capital expenditure was higher, and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$455.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$822.0M
Cash generated by operations before capital spending.
CapEx
$367.0M
Capital spending and related asset purchases.
FCF margin
5.5%
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 | $9.0B | $1.2B | $285.0M | $892.0M | 9.9% |
| 2023-12-31 | $9.3B | $1.6B | $332.0M | $1.2B | 13.2% |
| 2024-03-31 | $9.3B | $1.3B | $299.0M | $1.0B | 11.0% |
| 2024-06-30 | $8.3B | $822.0M | $367.0M | $455.0M | 5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | 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.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the year-ago quarter, while operating cash flow declined. This combination was the strongest observable factor behind the lower free cash flow and margin.
Higher capital spending absorbed a larger share of reduced operating cash flow, directly lowering free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but slightly below the year-ago level. Operating cash flow decreased relative to both periods, and capital expenditure was higher, resulting in a lower free cash flow and a narrower free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin were all lower, while capital expenditure was higher. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow and free cash flow were lower, capital expenditure was higher, and margin weakened.
Monitor the trajectory of capital expenditure relative to operating cash flow, as higher spending combined with lower cash generation further compressed free cash flow.