Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than both the prior quarter and the same quarter last year. However, operating cash flow turned sharply negative, resulting in a free cash flow margin that was significantly lower.
- Operating cash flow was deeply negative, far exceeding capital expenditure, which led to a large negative free cash flow and a deeply negative free cash flow margin.
- Compared to the prior quarter and the same quarter last year, operating cash flow weakened substantially, while capital expenditure was slightly lower than the prior quarter but higher than a year ago. Free cash flow and its margin both deteriorated markedly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$5.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$7.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$7.6B
Cash generated by operations before capital spending.
CapEx
$213.0M
Capital spending and related asset purchases.
FCF margin
-246.2%
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 | $2.7B | $222.0M | $135.0M | $87.0M | 3.2% |
| 2023-12-31 | $3.0B | $4.2B | $329.0M | $3.9B | 126.6% |
| 2024-03-31 | $3.1B | -$844.0M | $230.0M | -$1.1B | -34.2% |
| 2024-06-30 | $3.2B | -$7.6B | $213.0M | -$7.9B | -246.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1105.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | 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 swing
Operating cash flow shifted from a moderate negative in prior periods to a very large negative in the current quarter, overwhelming the modest revenue increase and stable capital expenditure.
The large negative operating cash flow was the primary factor driving free cash flow deeply negative and compressing the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was deeply negative, far exceeding capital expenditure, which led to a large negative free cash flow and a deeply negative free cash flow margin.
Compared to the prior quarter and the same quarter last year, operating cash flow weakened substantially, while capital expenditure was slightly lower than the prior quarter but higher than a year ago. Free cash flow and its margin both deteriorated markedly.
Monitor the components of operating cash flow, as the quarter experienced a substantial outflow not seen in recent comparable periods.