Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved compared to both the prior quarter and the year-ago quarter.
- Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was higher than the prior quarter but also higher than the year-ago quarter. Free cash flow was stable compared to the prior quarter and higher than the year-ago quarter, resulting in an improved free cash flow margin.
- Compared to the prior quarter, revenue was lower but operating cash flow was higher, leading to a higher free cash flow margin. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$424.7M
Capital spending and related asset purchases.
FCF margin
548.7%
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 | $2.5B | $1.1B | $524.6M | $617.3M | 25.1% |
| 2024-03-31 | $173.0M | $1.3B | $396.7M | $886.9M | 512.7% |
| 2024-06-30 | $196.4M | $1.3B | $325.2M | $1.0B | 515.9% |
| 2024-09-30 | $190.4M | $1.5B | $424.7M | $1.0B | 548.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -133.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 223.1% | 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 Growth
Operating cash flow was higher than both the prior quarter and the year-ago quarter, which supported free cash flow despite higher capital expenditure.
The increase in operating cash flow was the strongest observable driver of the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was higher than the prior quarter but also higher than the year-ago quarter. Free cash flow was stable compared to the prior quarter and higher than the year-ago quarter, resulting in an improved free cash flow margin.
Compared to the prior quarter, revenue was lower but operating cash flow was higher, leading to a higher free cash flow margin. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with an improved free cash flow margin.
Monitor the trend in capital expenditure relative to operating cash flow, as capital expenditure increased from both the prior quarter and the year-ago quarter.