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 large reduction in capital expenditure. Operating cash flow was stable compared to the year-ago period but increased sequentially.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow rose sequentially and was stable year-over-year. Capital expenditure fell significantly from the year-ago level, boosting free cash flow and free cash flow margin.
- Compared to the prior quarter, free cash flow and free cash flow margin both improved. Versus the year-ago quarter, free cash flow strengthened markedly as capital expenditure dropped sharply, while operating cash flow remained similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$825.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$877.0M
Cash generated by operations before capital spending.
CapEx
$52.0M
Capital spending and related asset purchases.
FCF margin
1683.7%
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 | $46.0M | $599.0M | $47.0M | $552.0M | 1200.0% |
| 2024-06-30 | $43.0M | $768.0M | $39.0M | $729.0M | 1695.3% |
| 2024-09-30 | $54.0M | $699.0M | $38.0M | $661.0M | 1224.1% |
| 2024-12-31 | $49.0M | $877.0M | $52.0M | $825.0M | 1683.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -17.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 106.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure fell substantially compared to the same quarter last year, which directly lifted free cash flow despite stable operating cash flow. The sequential comparison also showed a moderate increase in capex, but the year-over-year reduction was the strongest observable driver.
The lower capital expenditure was the primary reason free cash flow and free cash flow margin improved significantly versus the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow rose sequentially and was stable year-over-year. Capital expenditure fell significantly from the year-ago level, boosting free cash flow and free cash flow margin.
Compared to the prior quarter, free cash flow and free cash flow margin both improved. Versus the year-ago quarter, free cash flow strengthened markedly as capital expenditure dropped sharply, while operating cash flow remained similar.
Monitor the level of capital expenditure in upcoming quarters, as its sharp decline from the year-ago period was the primary factor behind the free cash flow improvement.