Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than the same quarter one year earlier, while revenue was higher. Compared to the immediately preceding quarter, free cash flow improved significantly.
- Operating cash flow was stable relative to the year-ago quarter, but capital expenditure was slightly higher, resulting in a lower free cash flow margin. Compared to the prior quarter, operating cash flow increased substantially, driving a higher free cash flow margin.
- Revenue was higher than both the year-ago quarter and the prior quarter. Free cash flow was lower than the year-ago quarter but higher than the prior quarter, with the margin weakening year over year and improving sequentially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$951.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$62.0M
Capital spending and related asset purchases.
FCF margin
25.6%
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 | $3.4B | $1.3B | $49.0M | $1.2B | 35.9% |
| 2024-03-31 | $4.1B | $309.0M | $48.0M | $261.0M | 6.4% |
| 2024-06-30 | $3.8B | $513.0M | $53.0M | $460.0M | 12.2% |
| 2024-09-30 | $3.7B | $1.0B | $62.0M | $951.0M | 25.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 277.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Improvement
Operating cash flow was substantially higher than the prior quarter, which was the strongest observable driver of the sequential free cash flow increase. Capital expenditure was only slightly higher, so the improvement in operating cash flow was the primary factor.
This drove a higher free cash flow and a stronger free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was stable relative to the year-ago quarter, but capital expenditure was slightly higher, resulting in a lower free cash flow margin. Compared to the prior quarter, operating cash flow increased substantially, driving a higher free cash flow margin.
Revenue was higher than both the year-ago quarter and the prior quarter. Free cash flow was lower than the year-ago quarter but higher than the prior quarter, with the margin weakening year over year and improving sequentially.
Monitor the relationship between operating cash flow and revenue, as operating cash flow remained stable year over year despite higher revenue.