Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sequentially but weakened compared to the same quarter last year. Operating cash flow was higher than the prior quarter but lower than the year-ago period.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose sequentially, supporting higher free cash flow and an improved margin, though operating cash flow declined from the year-ago period, resulting in a lower free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure lower. Versus the same quarter last year, revenue was higher, but operating cash flow and free cash flow were lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$55.0M
Capital spending and related asset purchases.
FCF margin
27.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $4.1B | $1.2B | $55.0M | $1.1B | 27.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 159.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Free Cash Flow Improvement
Free cash flow and its margin both increased from the prior quarter, driven by higher operating cash flow and lower capital expenditure.
This sequential improvement reflects stronger cash generation relative to the immediate prior period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose sequentially, supporting higher free cash flow and an improved margin, though operating cash flow declined from the year-ago period, resulting in a lower free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure lower. Versus the same quarter last year, revenue was higher, but operating cash flow and free cash flow were lower, while capital expenditure was higher.
Monitor the relationship between operating cash flow and revenue, as operating cash flow declined year-over-year despite higher revenue.