Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow was negative, as operating cash flow fell short of capital expenditure. The free cash flow margin weakened compared to both the prior quarter and the same quarter a year earlier.
- Revenue was substantial, but operating cash flow was notably lower, and after deducting capital expenditure, free cash flow turned deeply negative, yielding a negative margin.
- Operating cash flow was lower than the prior quarter, making free cash flow more negative and the margin weaker. Compared to the same quarter last year, operating cash flow was also lower, and free cash flow was more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$711.0M
Cash generated by operations before capital spending.
CapEx
$2.3B
Capital spending and related asset purchases.
FCF margin
-26.5%
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 | $5.9B | $1.8B | $2.4B | -$611.0M | -10.4% |
| 2023-12-31 | $7.0B | $477.0M | $2.6B | -$2.1B | -30.3% |
| 2024-03-31 | $5.9B | $2.3B | $2.6B | -$377.0M | -6.4% |
| 2024-06-30 | $6.0B | $711.0M | $2.3B | -$1.6B | -26.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -302.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 38.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$52.9B | 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 Decline
Operating cash flow decreased from the prior quarter and was also lower than the year-ago period, even though revenue was higher in both comparisons.
This decline drove the significant worsening of free cash flow and margin from both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was substantial, but operating cash flow was notably lower, and after deducting capital expenditure, free cash flow turned deeply negative, yielding a negative margin.
Operating cash flow was lower than the prior quarter, making free cash flow more negative and the margin weaker. Compared to the same quarter last year, operating cash flow was also lower, and free cash flow was more negative.
Monitor the trajectory of operating cash flow, as its decline was the primary reason for the quarter's free cash flow weakness.