Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin weakened versus both periods due to a larger rise in capital expenditure relative to operating cash flow.
- Operating cash flow rose from the prior quarter and from a year ago, but capital expenditure increased more sharply, resulting in lower free cash flow and a narrower free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher while free cash flow was lower and the margin weakened. Versus the same quarter one year earlier, revenue was higher but free cash flow was lower and the margin also weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$474.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$704.0M
Cash generated by operations before capital spending.
CapEx
$230.0M
Capital spending and related asset purchases.
FCF margin
11.7%
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 | $3.3B | $841.8M | $105.0M | $736.8M | 22.1% |
| 2024-03-31 | $3.3B | $599.5M | $94.3M | $505.2M | 15.5% |
| 2024-06-30 | $3.6B | $664.1M | $141.3M | $522.8M | 14.5% |
| 2024-09-30 | $4.0B | $704.0M | $230.0M | $474.0M | 11.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 78.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | 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.
Capital Expenditure Growth
Capital expenditure rose substantially from both the prior quarter and the year-ago quarter, while operating cash flow increased at a slower pace. This divergence was the strongest observable factor behind the decline in free cash flow and margin.
Higher capital expenditure absorbed a larger share of operating cash flow, reducing free cash flow and margin despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose from the prior quarter and from a year ago, but capital expenditure increased more sharply, resulting in lower free cash flow and a narrower free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher while free cash flow was lower and the margin weakened. Versus the same quarter one year earlier, revenue was higher but free cash flow was lower and the margin also weakened.
Monitor the trajectory of capital expenditure, as its increase outpaced operating cash flow growth and compressed free cash flow.