Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved substantially compared to both the prior quarter and the same quarter last year. Operating cash flow grew at a faster pace than revenue, driving the increase.
- Revenue increased from the prior quarter and from a year ago, while operating cash flow rose even more sharply. Capital expenditure remained minimal, resulting in a higher free cash flow and an improved free cash flow margin.
- Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and margin all increased. Versus the same quarter last year, all metrics were also higher, with the margin improving from stable levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$12.0M
Capital spending and related asset purchases.
FCF margin
42.5%
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 | $4.0B | $1.7B | $15.0M | $1.6B | 41.5% |
| 2024-03-31 | $3.9B | $1.6B | $15.0M | $1.5B | 39.3% |
| 2024-06-30 | $4.2B | $1.5B | $11.0M | $1.5B | 35.6% |
| 2024-09-30 | $4.7B | $2.0B | $12.0M | $2.0B | 42.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 203.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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 Outpacing Revenue
Operating cash flow increased at a faster rate than revenue when comparing the current quarter to both the prior quarter and the year-ago period, leading to a higher proportion of revenue converted into cash.
This operational efficiency directly contributed to the significant rise in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and from a year ago, while operating cash flow rose even more sharply. Capital expenditure remained minimal, resulting in a higher free cash flow and an improved free cash flow margin.
Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and margin all increased. Versus the same quarter last year, all metrics were also higher, with the margin improving from stable levels.
Monitor the free cash flow margin to see if the current elevated level persists.