Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus the prior quarter and the year-ago quarter, driven by a significant increase in operating cash flow. Revenue was slightly lower sequentially but higher year over year, while the free cash flow margin expanded notably.
- Operating cash flow rose substantially relative to revenue, lifting the free cash flow margin well above both the prior quarter and the year-ago period. Capital expenditure increased modestly, but the conversion from revenue to free cash flow strengthened considerably.
- Compared to the immediately preceding quarter, free cash flow was higher and the margin improved, despite a slight decline in revenue. Versus the same quarter one year earlier, free cash flow and margin were also higher, with revenue moderately higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$710.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$300.0M
Capital spending and related asset purchases.
FCF margin
10.3%
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 | $6.8B | $932.0M | $356.0M | $576.0M | 8.4% |
| 2024-03-31 | $6.4B | $784.0M | $333.0M | $451.0M | 7.0% |
| 2024-06-30 | $7.1B | $348.0M | $292.0M | $56.0M | 0.8% |
| 2024-09-30 | $6.9B | $1.0B | $300.0M | $710.0M | 10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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.
Operating Cash Flow Strength
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, outpacing the change in revenue. This was the primary factor behind the improvement in free cash flow and margin.
The higher operating cash flow directly drove free cash flow higher and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose substantially relative to revenue, lifting the free cash flow margin well above both the prior quarter and the year-ago period. Capital expenditure increased modestly, but the conversion from revenue to free cash flow strengthened considerably.
Compared to the immediately preceding quarter, free cash flow was higher and the margin improved, despite a slight decline in revenue. Versus the same quarter one year earlier, free cash flow and margin were also higher, with revenue moderately higher.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.