Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as lower capital expenditure cushioned a decline in revenue and a slight rise in operating cash flow. Year over year, free cash flow weakened significantly despite higher revenue, driven by a sharp drop in operating cash flow.
- Revenue was lower than the prior quarter, yet operating cash flow edged higher, and free cash flow margin expanded as capital expenditure decreased. Compared with the same quarter last year, revenue was higher but operating cash flow fell substantially, compressing free cash flow and its margin.
- Sequentially, free cash flow and its margin improved despite lower revenue. Year over year, all cash flow metrics weakened, with operating cash flow and free cash flow both lower, while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$316.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$345.3M
Cash generated by operations before capital spending.
CapEx
$28.6M
Capital spending and related asset purchases.
FCF margin
6.1%
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 | $4.9B | $440.0M | $29.5M | $410.5M | 8.4% |
| 2024-06-30 | $5.4B | $149.9M | $30.9M | $119.0M | 2.2% |
| 2024-09-30 | $5.5B | $342.1M | $33.6M | $308.5M | 5.6% |
| 2024-12-31 | $5.2B | $345.3M | $28.6M | $316.7M | 6.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.3B | 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 resilience
Despite lower revenue, operating cash flow held roughly flat sequentially, and capital expenditure decreased, allowing free cash flow to improve.
This supported a higher free cash flow margin even as the top line contracted.
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, yet operating cash flow edged higher, and free cash flow margin expanded as capital expenditure decreased. Compared with the same quarter last year, revenue was higher but operating cash flow fell substantially, compressing free cash flow and its margin.
Sequentially, free cash flow and its margin improved despite lower revenue. Year over year, all cash flow metrics weakened, with operating cash flow and free cash flow both lower, while revenue was higher.
Monitor the trajectory of operating cash flow relative to revenue, as it declined sharply year over year while revenue increased.