Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and operating cash flow were higher than both the prior quarter and the same quarter one year earlier. The free cash flow margin improved over those periods.
- Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow rose as well, and capital expenditure remained low, resulting in free cash flow that closely tracked operating cash flow. The margin improved.
- Compared to the preceding quarter, revenue and operating cash flow grew, and the free cash flow margin strengthened. Versus the same quarter one year earlier, all metrics increased and the margin widened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$7.0M
Capital spending and related asset purchases.
FCF margin
64.5%
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 | $1.5B | $526.5M | $6.0M | $520.5M | 33.8% |
| 2024-03-31 | $1.6B | $513.8M | $9.4M | $504.4M | 32.1% |
| 2024-06-30 | $1.7B | $989.0M | $3.2M | $985.8M | 58.3% |
| 2024-09-30 | $1.8B | $1.2B | $7.0M | $1.2B | 64.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 156.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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.
Improved Operating Cash Flow
Operating cash flow increased relative to both the prior quarter and the year-ago quarter, reflecting higher revenue.
The higher operating cash flow directly supported the improvement in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow rose as well, and capital expenditure remained low, resulting in free cash flow that closely tracked operating cash flow. The margin improved.
Compared to the preceding quarter, revenue and operating cash flow grew, and the free cash flow margin strengthened. Versus the same quarter one year earlier, all metrics increased and the margin widened.
Monitor the level of capital expenditure, as future capital requirements may depend on growth and research and development spending.