Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow turned positive compared to a negative figure one year earlier, though it weakened sharply from the preceding quarter.
- Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure was higher than the prior quarter and lower than the year-ago quarter, resulting in a free cash flow margin that improved from negative a year earlier but weakened from the prior quarter.
- Compared to the prior quarter, revenue was slightly lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were both lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin both improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$305.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$88.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$1.4B
Capital spending and related asset purchases.
FCF margin
0.6%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $13.6B | -$910.0M | $2.1B | -$3.0B | -21.8% |
| 2024-03-31 | $12.5B | $2.8B | $1.4B | $1.5B | 11.8% |
| 2024-06-30 | $15.0B | $2.9B | $1.2B | $1.7B | 11.4% |
| 2024-09-30 | $14.8B | $1.5B | $1.4B | $88.0M | 0.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 9.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.7B | 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 decline
Operating cash flow was lower than the prior quarter, while capital expenditure was higher, leading to a substantial reduction in free cash flow. The free cash flow margin weakened from the prior quarter.
The combination of lower operating cash flow and higher capital expenditure compressed free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure was higher than the prior quarter and lower than the year-ago quarter, resulting in a free cash flow margin that improved from negative a year earlier but weakened from the prior quarter.
Compared to the prior quarter, revenue was slightly lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were both lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin both improved from negative to positive.
Monitor the relationship between operating cash flow and capital expenditure, as the gap narrowed significantly from the prior quarter.