Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved compared to the prior quarter, as operating cash flow and free cash flow both moved higher while capital expenditure increased. Versus the same quarter one year earlier, operating cash flow was higher, but free cash flow and margin are not available for comparison.
- Revenue was lower than the prior quarter, yet operating cash flow and free cash flow were higher, resulting in an improved free cash flow margin. Capital expenditure was present this quarter versus none in the prior quarter, but the cash conversion strengthened overall.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, with free cash flow margin improved. Compared to the same quarter one year earlier, revenue was lower and operating cash flow was higher; free cash flow and margin are missing for the year-ago period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$399.0M
Capital spending and related asset purchases.
FCF margin
27.9%
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 | $5.1B | $1.4B | n/a | n/a | n/a |
| 2024-06-30 | $4.7B | $1.5B | n/a | n/a | n/a |
| 2024-09-30 | $5.5B | $2.2B | $0 | $2.2B | 39.7% |
| 2024-12-31 | $4.8B | $1.7B | $399.0M | $1.3B | 27.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 199.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$42.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger Operating Cash Flow
Operating cash flow was higher than both the prior quarter and the year-ago quarter, despite lower revenue in both comparisons. This was the strongest observable driver of free cash flow improvement.
Higher operating cash flow more than offset the increase in capital expenditure, leading to improved free cash flow and margin.
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, yet operating cash flow and free cash flow were higher, resulting in an improved free cash flow margin. Capital expenditure was present this quarter versus none in the prior quarter, but the cash conversion strengthened overall.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, with free cash flow margin improved. Compared to the same quarter one year earlier, revenue was lower and operating cash flow was higher; free cash flow and margin are missing for the year-ago period.
Monitor the trend in capital expenditure, which increased from zero in the prior quarter to a positive amount this quarter, as it directly affects free cash flow.