Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than both the prior quarter and the same quarter a year ago, resulting in improved free cash flow and margin. The free cash flow margin was higher than in both comparison periods.
- Operating cash flow increased more than revenue, while capital expenditure rose modestly, leading to a higher free cash flow margin compared to the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow all increased, with free cash flow margin rising. Versus the same quarter one year earlier, the metrics were also higher, with a particularly large increase in operating cash flow and free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.8B
Cash generated by operations before capital spending.
CapEx
$371.0M
Capital spending and related asset purchases.
FCF margin
48.4%
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 | $7.4B | $689.0M | $230.0M | $459.0M | 6.2% |
| 2024-06-30 | $8.4B | $2.5B | $238.0M | $2.2B | 26.5% |
| 2024-09-30 | $8.5B | $3.6B | $257.0M | $3.3B | 39.0% |
| 2024-12-31 | $9.1B | $4.8B | $371.0M | $4.4B | 48.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 701.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$48.1B | 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 Growth
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was only slightly higher, resulting in a higher free cash flow margin.
The increase in operating cash flow was the strongest observable factor in the improvement of free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased more than revenue, while capital expenditure rose modestly, leading to a higher free cash flow margin compared to the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow all increased, with free cash flow margin rising. Versus the same quarter one year earlier, the metrics were also higher, with a particularly large increase in operating cash flow and free cash flow margin.
Monitor the trajectory of operating cash flow, as it was the primary driver of the improvement in free cash flow.