Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive from the prior quarter's negative level, driving a substantial free cash flow margin. Revenue was stable versus both the prior quarter and the same quarter last year.
- Revenue was essentially unchanged, but operating cash flow improved markedly from a negative figure to a positive level, resulting in a free cash flow margin that shifted from negative to positive. Capital expenditure was slightly higher than the prior quarter but lower than a year ago.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved from negative to positive, and the free cash flow margin turned positive. Versus the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.6B
Cash generated by operations before capital spending.
CapEx
$31.0M
Capital spending and related asset purchases.
FCF margin
41.2%
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 | $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% |
| 2024-09-30 | $6.3B | $2.6B | $31.0M | $2.6B | 41.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 112.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$23.3B | 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 rebounded from a negative figure in the prior quarter to a positive level, which was the primary factor behind the swing in free cash flow from negative to positive. Revenue was stable, so the improvement was driven by cash flow generation rather than top-line changes.
The recovery in operating cash flow directly enabled a positive free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was essentially unchanged, but operating cash flow improved markedly from a negative figure to a positive level, resulting in a free cash flow margin that shifted from negative to positive. Capital expenditure was slightly higher than the prior quarter but lower than a year ago.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved from negative to positive, and the free cash flow margin turned positive. Versus the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor whether operating cash flow can sustain its positive level given the prior quarter's negative reading and the year-ago quarter's higher level.