Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow conversion weakened in the current quarter compared to both the prior quarter and the same quarter last year. The free cash flow margin declined as operating cash flow decreased relative to revenue.
- Revenue was lower than the prior quarter and higher than the year-ago quarter. Operating cash flow was lower than both periods, resulting in a free cash flow margin that was weaker than both comparisons.
- Compared with the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all declined. Compared with the year-ago quarter, revenue improved but operating cash flow, free cash flow, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$13.0M
Capital spending and related asset purchases.
FCF margin
34.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $4.5B | $1.6B | $13.0M | $1.6B | 34.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 166.8% | 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 Decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, even though revenue was higher year-over-year. This was the primary observable factor behind the weaker free cash flow margin.
The decline in operating cash flow reduced the free cash flow margin compared with both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter and higher than the year-ago quarter. Operating cash flow was lower than both periods, resulting in a free cash flow margin that was weaker than both comparisons.
Compared with the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all declined. Compared with the year-ago quarter, revenue improved but operating cash flow, free cash flow, and free cash flow margin weakened.
Monitor the trend in operating cash flow relative to revenue, as it declined from both comparison periods.