Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than both the prior quarter and the same quarter last year, while free cash flow margin improved compared to both periods. Operating cash flow increased relative to the year-ago quarter, supporting a higher free cash flow.
- Operating cash flow as a proportion of revenue was higher than both the preceding quarter and the year-ago quarter, and capital expenditure was lower than the year-ago quarter, resulting in an improved free cash flow margin.
- Compared to the prior quarter, revenue was slightly lower but free cash flow was higher, with a stronger free cash flow margin. Versus the same quarter last year, revenue was slightly lower while operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$184.0M
Capital spending and related asset purchases.
FCF margin
21.9%
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 | $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% |
| 2024-12-31 | $4.9B | $1.3B | $184.0M | $1.1B | 21.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 146.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Cash Generation Efficiency
Operating cash flow increased compared to the year-ago quarter despite slightly lower revenue, and capital expenditure decreased over the same period, leading to a higher free cash flow margin.
This combination strengthened free cash flow relative to revenue in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the preceding quarter and the year-ago quarter, and capital expenditure was lower than the year-ago quarter, resulting in an improved free cash flow margin.
Compared to the prior quarter, revenue was slightly lower but free cash flow was higher, with a stronger free cash flow margin. Versus the same quarter last year, revenue was slightly lower while operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in capital expenditure, which was higher than the prior quarter but lower than the year-ago quarter.