Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow were stable compared to the same quarter last year, while the free cash flow margin improved slightly. Revenue was higher than a year ago but slightly lower than the prior quarter.
- Revenue was lower than the prior quarter, but operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure was higher than the prior quarter but lower than a year ago, supporting free cash flow conversion.
- Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow were higher, resulting in an improved free cash flow margin. Versus the same quarter last year, revenue was higher, operating cash flow was stable, and free cash flow was slightly higher, with a marginally improved margin.
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
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$134.0M
Capital spending and related asset purchases.
FCF margin
20.5%
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 | $5.0B | $1.1B | $197.0M | $939.0M | 19.0% |
| 2024-03-31 | $5.1B | $681.0M | $126.0M | $555.0M | 11.0% |
| 2024-06-30 | $5.1B | $990.0M | $117.0M | $873.0M | 17.3% |
| 2024-09-30 | $5.0B | $1.2B | $134.0M | $1.0B | 20.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 140.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.7B | 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 Strength
Operating cash flow was higher than the prior quarter and stable versus a year ago, despite a slight decline in revenue from the prior quarter. This supported a higher free cash flow margin.
The improvement in operating cash flow relative to revenue was the strongest observable driver of the quarter's free cash flow performance.
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 operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure was higher than the prior quarter but lower than a year ago, supporting free cash flow conversion.
Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow were higher, resulting in an improved free cash flow margin. Versus the same quarter last year, revenue was higher, operating cash flow was stable, and free cash flow was slightly higher, with a marginally improved margin.
Monitor the trend in capital expenditure relative to operating cash flow, as it was higher sequentially but lower year-over-year.