Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter, driven by operating cash flow that was lower than capital expenditure. Revenue was stable compared to the same quarter last year but decreased from the prior quarter.
- Operating cash flow was lower than capital expenditure, resulting in negative free cash flow and a negative free cash flow margin. The conversion from revenue to free cash flow weakened compared to both the prior quarter and the same quarter last year.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Compared to the same quarter last year, revenue was stable, operating cash flow was lower, capital expenditure was higher, and free cash flow was more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$975.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$355.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$482.0M
Cash generated by operations before capital spending.
CapEx
$837.0M
Capital spending and related asset purchases.
FCF margin
-14.7%
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 | $2.5B | $687.0M | $916.0M | -$229.0M | -9.3% |
| 2023-12-31 | $2.6B | $710.0M | $965.0M | -$255.0M | -9.8% |
| 2024-03-31 | $2.8B | $661.0M | $797.0M | -$136.0M | -4.9% |
| 2024-06-30 | $2.4B | $482.0M | $837.0M | -$355.0M | -14.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -81.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 34.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.4B | 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 outpacing operating cash flow
Capital expenditure increased compared to both the prior quarter and the same quarter last year, while operating cash flow declined. This divergence was the strongest observable driver of the more negative free cash flow.
The larger capital expenditure relative to operating cash flow directly reduced free cash flow in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than capital expenditure, resulting in negative free cash flow and a negative free cash flow margin. The conversion from revenue to free cash flow weakened compared to both the prior quarter and the same quarter last year.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Compared to the same quarter last year, revenue was stable, operating cash flow was lower, capital expenditure was higher, and free cash flow was more negative.
Monitor the relationship between operating cash flow and capital expenditure, as the gap widened in the current quarter.