Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sharply from the prior quarter, driven by a lower operating cash flow despite a smaller capital expenditure. Compared to the same quarter last year, free cash flow also declined, though revenue was higher.
- Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was lower than both periods, resulting in a free cash flow margin that was lower than both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$149.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$161.4M
Cash generated by operations before capital spending.
CapEx
$11.9M
Capital spending and related asset purchases.
FCF margin
4.9%
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 | $3.7B | $939.8M | $17.8M | $922.1M | 25.0% |
| 2024-06-30 | $2.8B | $1.2B | $12.4M | $1.1B | 41.0% |
| 2024-09-30 | $3.7B | $1.2B | $19.4M | $1.2B | 32.8% |
| 2024-12-31 | $3.1B | $161.4M | $11.9M | $149.5M | 4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 21.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.5B | 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 Decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure was also lower. The reduction in operating cash flow was the strongest observable driver of the lower free cash flow.
The lower operating cash flow more than offset the benefit of reduced capital expenditure, leading to a weakened free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was lower than both periods, resulting in a free cash flow margin that was lower than both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trend in operating cash flow, as it was the primary factor behind the decline in free cash flow this quarter.