Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow margin improved sequentially but remained below the level of the same quarter one year earlier. Operating cash flow increased compared to the prior quarter, while capital expenditure also rose, resulting in higher free cash flow.
- Revenue was slightly lower than both the preceding quarter and the same quarter one year earlier. Operating cash flow rose significantly from the prior quarter, but capital expenditure also increased, leading to higher free cash flow and a stronger free cash flow margin relative to the previous quarter.
- Compared to the preceding quarter, free cash flow and margin improved, driven by higher operating cash flow despite increased capital expenditure. Versus the same quarter one year ago, both free cash flow and margin weakened, as operating cash flow was slightly lower and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$279.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$882.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$540.0M
Capital spending and related asset purchases.
FCF margin
10.4%
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 | $8.4B | $276.0M | $169.0M | $107.0M | 1.3% |
| 2024-06-30 | $8.8B | -$851.0M | $240.0M | -$1.1B | -12.4% |
| 2024-09-30 | $8.5B | $640.0M | $259.0M | $381.0M | 4.5% |
| 2024-12-31 | $8.4B | $1.4B | $540.0M | $882.0M | 10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 198.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Improvement
Operating cash flow increased substantially from the previous quarter, more than offsetting the rise in capital expenditure and lifting free cash flow. This was the main factor behind the sequential improvement in free cash flow margin.
Free cash flow margin improved sequentially but remained below the level of the same quarter one year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than both the preceding quarter and the same quarter one year earlier. Operating cash flow rose significantly from the prior quarter, but capital expenditure also increased, leading to higher free cash flow and a stronger free cash flow margin relative to the previous quarter.
Compared to the preceding quarter, free cash flow and margin improved, driven by higher operating cash flow despite increased capital expenditure. Versus the same quarter one year ago, both free cash flow and margin weakened, as operating cash flow was slightly lower and capital expenditure was higher.
Monitor the trajectory of capital expenditure, as it rose in the current quarter and may influence future free cash flow generation.