Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, supported by higher revenue and operating cash flow. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue and operating cash flow both increased, while capital expenditure rose moderately, resulting in higher free cash flow. The free cash flow margin expanded, indicating a larger proportion of revenue converted into free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$277.0M
Capital spending and related asset purchases.
FCF margin
25.8%
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 | $3.9B | $164.0M | $179.0M | -$15.0M | -0.4% |
| 2024-06-30 | $4.1B | $813.0M | $155.0M | $658.0M | 16.0% |
| 2024-09-30 | $4.2B | $1.0B | $179.0M | $823.0M | 19.6% |
| 2024-12-31 | $4.6B | $1.5B | $277.0M | $1.2B | 25.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 209.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | 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 Growth
Operating cash flow was higher than both the prior quarter and the same quarter last year, providing the primary support for the increase in free cash flow.
This drove free cash flow higher and contributed to the expansion of the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased, while capital expenditure rose moderately, resulting in higher free cash flow. The free cash flow margin expanded, indicating a larger proportion of revenue converted into free cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher and the margin strengthened.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased from both comparison periods.