Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow remained negative, though the deficit narrowed from the year-ago quarter.
- With revenue unchanged, operating cash flow was deeply negative, leading to a negative free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, but the improvement in free cash flow was driven entirely by a smaller operating cash outflow.
- Compared to the prior quarter, operating cash flow weakened further, resulting in a more negative free cash flow margin. Versus the same quarter last year, however, operating cash flow improved, and free cash flow margin was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.3B
Cash generated by operations before capital spending.
CapEx
$89.0M
Capital spending and related asset purchases.
FCF margin
-92.6%
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 | $4.6B | -$5.0B | $239.0M | -$5.3B | -114.0% |
| 2023-12-31 | $4.5B | $20.0B | $167.0M | $19.9B | 445.6% |
| 2024-03-31 | $4.7B | -$1.3B | $149.0M | -$1.5B | -31.6% |
| 2024-06-30 | $4.7B | -$4.3B | $89.0M | -$4.3B | -92.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -325.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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 Deficit
Operating cash flow was negative in the current quarter, a larger deficit than the prior quarter but smaller than the year-ago quarter. This is the strongest observable driver of free cash flow, as capital expenditure was relatively small.
The negative operating cash flow directly caused free cash flow to remain negative, despite stable revenue and lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, operating cash flow was deeply negative, leading to a negative free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, but the improvement in free cash flow was driven entirely by a smaller operating cash outflow.
Compared to the prior quarter, operating cash flow weakened further, resulting in a more negative free cash flow margin. Versus the same quarter last year, however, operating cash flow improved, and free cash flow margin was less negative.
Monitor whether operating cash flow can turn positive, as it remains the primary factor behind the negative free cash flow.