Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased significantly from the prior quarter and the year-ago quarter, supported by higher operating cash flow and a modest increase in capital expenditure. The free cash flow margin improved sequentially and year-over-year.
- Revenue rose while operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure was slightly higher but remained modest relative to operating cash flow.
- Compared to the prior quarter, all key metrics improved: revenue, operating cash flow, and free cash flow were higher, and the margin strengthened. Versus the same quarter last year, revenue and free cash flow both increased, with operating cash flow growing faster than capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$913.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$494.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$573.0M
Cash generated by operations before capital spending.
CapEx
$79.0M
Capital spending and related asset purchases.
FCF margin
5.6%
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 | $8.9B | $853.0M | $94.0M | $759.0M | 8.6% |
| 2024-03-31 | $7.8B | -$492.0M | $68.0M | -$560.0M | -7.2% |
| 2024-06-30 | $8.3B | $287.0M | $67.0M | $220.0M | 2.7% |
| 2024-09-30 | $8.9B | $573.0M | $79.0M | $494.0M | 5.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 219.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | 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 in the current quarter compared to both the prior quarter and the year-ago quarter, reflecting improved cash generation from revenue.
The increase in operating cash flow was the primary factor behind the higher free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure was slightly higher but remained modest relative to operating cash flow.
Compared to the prior quarter, all key metrics improved: revenue, operating cash flow, and free cash flow were higher, and the margin strengthened. Versus the same quarter last year, revenue and free cash flow both increased, with operating cash flow growing faster than capital expenditure.
Monitor the company's planned capital expenditure commitments for the remainder of the year, as noted in the filing.