Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both increased compared to the same quarter last year, while free cash flow margin improved. Versus the prior quarter, revenue rose but operating cash flow, free cash flow, and margin all declined.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was lower than the prior quarter but higher than the same quarter last year, indicating a mixed conversion efficiency relative to revenue.
- Compared to the prior quarter, revenue increased while operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$77.0M
Capital spending and related asset purchases.
FCF margin
28.7%
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 | $4.8B | $1.3B | $94.0M | $1.3B | 26.2% |
| 2024-03-31 | $4.4B | $2.7B | $130.0M | $2.6B | 58.3% |
| 2024-06-30 | $5.9B | $2.5B | $146.0M | $2.4B | 40.6% |
| 2024-09-30 | $8.0B | $2.4B | $77.0M | $2.3B | 28.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | n/a | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$437.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth supporting cash generation
Revenue was higher than both the prior quarter and the same quarter last year. This provided a larger base from which operating cash flow and free cash flow were generated, contributing to the year-over-year improvement in free cash flow margin.
Higher revenue was the strongest observable driver of the year-over-year increase in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was lower than the prior quarter but higher than the same quarter last year, indicating a mixed conversion efficiency relative to revenue.
Compared to the prior quarter, revenue increased while operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin all improved.
Monitor the relationship between operating cash flow and revenue, as operating cash flow declined sequentially despite higher revenue.