Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned negative, driving free cash flow deeply negative despite lower capital expenditure. Revenue rose from the prior quarter but fell from a year ago, while free cash flow margin weakened sharply.
- Revenue was positive, but operating cash flow was negative, resulting in a negative free cash flow and free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, yet insufficient to offset the operating cash outflow.
- Compared to the immediately preceding quarter, revenue improved, but operating cash flow and free cash flow both turned from positive to negative, and free cash flow margin weakened. Versus the same quarter one year earlier, revenue was lower, operating cash flow and free cash flow were more negative, and free cash flow margin deteriorated.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$104.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$75.0M
Cash generated by operations before capital spending.
CapEx
$29.0M
Capital spending and related asset purchases.
FCF margin
-1.7%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $6.3B | $3.0B | $40.0M | $2.9B | 46.4% |
| 2023-12-31 | $6.0B | $3.2B | $53.0M | $3.2B | 53.1% |
| 2024-03-31 | $5.6B | $2.9B | $35.0M | $2.8B | 51.0% |
| 2024-06-30 | $6.2B | -$75.0M | $29.0M | -$104.0M | -1.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -2.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$23.2B | 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 Swing
Operating cash flow shifted from positive in both the prior quarter and the year-ago quarter to negative in the current quarter. This swing is the strongest observable driver of the negative free cash flow.
The negative operating cash flow overwhelmed the benefit of lower capital expenditure, causing free cash flow to turn deeply negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was positive, but operating cash flow was negative, resulting in a negative free cash flow and free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, yet insufficient to offset the operating cash outflow.
Compared to the immediately preceding quarter, revenue improved, but operating cash flow and free cash flow both turned from positive to negative, and free cash flow margin weakened. Versus the same quarter one year earlier, revenue was lower, operating cash flow and free cash flow were more negative, and free cash flow margin deteriorated.
Monitor whether operating cash flow returns to positive levels in the next quarter, as the current negative level is the primary driver of free cash flow weakness.