Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter and the year-ago quarter, driven by higher operating cash flow. The free cash flow margin strengthened compared with both periods.
- Revenue increased from the prior quarter and the year-ago quarter, while operating cash flow rose more than proportionally, leading to higher free cash flow. Capital expenditure remained stable, supporting the conversion of revenue into free cash flow.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Versus the same quarter last year, revenue was higher, operating cash flow and free cash flow were higher, and the free cash flow margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$93.0M
Capital spending and related asset purchases.
FCF margin
12.2%
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 | $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% |
| 2024-12-31 | $10.2B | $1.3B | $93.0M | $1.2B | 12.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 256.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.2B | 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 increased substantially from both the prior quarter and the year-ago quarter, outpacing revenue growth. This was the primary factor behind the improvement in free cash flow and margin.
Higher operating cash flow directly boosted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and the year-ago quarter, while operating cash flow rose more than proportionally, leading to higher free cash flow. Capital expenditure remained stable, supporting the conversion of revenue into free cash flow.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Versus the same quarter last year, revenue was higher, operating cash flow and free cash flow were higher, and the free cash flow margin strengthened.
Monitor future capital expenditure commitments, particularly the expected funding for co-investments and consolidated projects in the REI segment.