Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter, driven by a significant increase in operating cash flow. The free cash flow margin improved from negative in both the prior quarter and the year-ago quarter.
- Revenue was relatively stable, while operating cash flow rose sharply compared with the prior quarter and the year-ago quarter. Capital expenditure increased moderately, but the stronger operating cash flow more than offset that, resulting in positive free cash flow and a positive margin.
- Compared with the immediately preceding quarter, operating cash flow improved markedly and free cash flow shifted from negative to positive. Versus the same quarter one year ago, both operating cash flow and free cash flow were higher, reversing a negative free cash flow position.
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
$526.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$2.6B
Capital spending and related asset purchases.
FCF margin
8.9%
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 | $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% |
| 2024-09-30 | $5.9B | $3.1B | $2.6B | $526.0M | 8.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 43.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$56.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This improvement was the strongest observable factor in the period.
Free cash flow margin turned positive after being negative in the preceding two comparable periods, signaling a strengthened cash conversion position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was relatively stable, while operating cash flow rose sharply compared with the prior quarter and the year-ago quarter. Capital expenditure increased moderately, but the stronger operating cash flow more than offset that, resulting in positive free cash flow and a positive margin.
Compared with the immediately preceding quarter, operating cash flow improved markedly and free cash flow shifted from negative to positive. Versus the same quarter one year ago, both operating cash flow and free cash flow were higher, reversing a negative free cash flow position.
Capital expenditure rose from the prior quarter; its trajectory relative to operating cash flow will be important to monitor for sustaining positive free cash flow.