Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from the prior quarter, driving a swing to positive free cash flow. Revenue was higher than both the preceding quarter and the same quarter one year earlier.
- Revenue increased while operating cash flow rose substantially, resulting in a free cash flow margin that turned positive from negative in the prior quarter and improved from a year ago. Capital expenditure was slightly higher than the prior quarter but remained stable relative to the year-ago quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were both higher, and the free cash flow margin improved from negative to positive. Versus the same quarter one year earlier, all metrics—revenue, operating cash flow, free cash flow, and margin—were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$537.0M
Capital spending and related asset purchases.
FCF margin
11.1%
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 | $13.5B | $3.3B | $564.0M | $2.8B | 20.4% |
| 2023-12-31 | $19.9B | $4.7B | $805.0M | $3.9B | 19.6% |
| 2024-03-31 | $19.3B | $342.0M | $467.0M | -$125.0M | -0.6% |
| 2024-06-30 | $19.7B | $2.7B | $537.0M | $2.2B | 11.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1978.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 strength
Operating cash flow was the strongest observable driver, rising significantly from both the prior quarter and the year-ago quarter. This directly supported the improvement in free cash flow and margin.
The increase in operating cash flow was the primary factor behind the swing to positive free cash flow and the higher margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose substantially, resulting in a free cash flow margin that turned positive from negative in the prior quarter and improved from a year ago. Capital expenditure was slightly higher than the prior quarter but remained stable relative to the year-ago quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were both higher, and the free cash flow margin improved from negative to positive. Versus the same quarter one year earlier, all metrics—revenue, operating cash flow, free cash flow, and margin—were higher.
Monitor whether operating cash flow can sustain its current level relative to revenue in subsequent quarters.