Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable compared to both the preceding quarter and the same quarter one year earlier. Operating cash flow improved substantially, capital expenditure was lower, and free cash flow and free cash flow margin both strengthened.
- With revenue unchanged, a higher operating cash flow and a lower capital expenditure resulted in a much higher free cash flow and an improved free cash flow margin.
- Compared to the preceding quarter, operating cash flow was higher, capital expenditure was slightly lower, and free cash flow and margin both improved. Versus the same quarter one year earlier, the same directional changes were observed, with operating cash flow and free cash flow both higher and capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$894.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$166.0M
Capital spending and related asset purchases.
FCF margin
18.2%
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 | $4.9B | $244.0M | $265.0M | -$21.0M | -0.4% |
| 2024-06-30 | $5.1B | $643.0M | $226.0M | $417.0M | 8.3% |
| 2024-09-30 | $4.9B | $499.0M | $173.0M | $326.0M | 6.7% |
| 2024-12-31 | $4.9B | $1.1B | $166.0M | $894.0M | 18.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 333.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.9B | 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 improvement
Operating cash flow increased substantially while revenue held steady and capital expenditure declined. This combination directly lifted free cash flow and margin.
The improvement in operating cash flow was the strongest observable factor behind the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, a higher operating cash flow and a lower capital expenditure resulted in a much higher free cash flow and an improved free cash flow margin.
Compared to the preceding quarter, operating cash flow was higher, capital expenditure was slightly lower, and free cash flow and margin both improved. Versus the same quarter one year earlier, the same directional changes were observed, with operating cash flow and free cash flow both higher and capital expenditure lower.
Monitor whether operating cash flow can sustain at the current elevated level relative to revenue.