Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened sharply this quarter as operating cash flow declined while revenue rose. Free cash flow margin fell compared to both the prior quarter and the same quarter last year.
- Revenue increased from the prior quarter, but operating cash flow was substantially lower, resulting in a much lower free cash flow margin. Capital expenditure was slightly higher, further reducing free cash flow relative to revenue.
- Compared to the immediately preceding quarter, free cash flow and its margin were significantly lower. Versus the same quarter one year earlier, both operating cash flow and free cash flow were lower, while revenue was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$17.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$356.0M
Capital spending and related asset purchases.
FCF margin
129.9%
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 | $1.4B | $3.0B | $247.0M | $2.8B | 198.8% |
| 2024-06-30 | $1.5B | $6.2B | $289.0M | $6.0B | 405.6% |
| 2024-09-30 | $1.4B | $6.5B | $312.0M | $6.1B | 424.7% |
| 2024-12-31 | $1.6B | $2.4B | $356.0M | $2.1B | 129.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 190.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.1% | 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 decline
Operating cash flow decreased substantially from both the prior quarter and the year-ago quarter, despite a modest increase in revenue. This drove a significant reduction in free cash flow and margin.
The lower operating cash flow was the primary factor behind the weakened cash conversion this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, but operating cash flow was substantially lower, resulting in a much lower free cash flow margin. Capital expenditure was slightly higher, further reducing free cash flow relative to revenue.
Compared to the immediately preceding quarter, free cash flow and its margin were significantly lower. Versus the same quarter one year earlier, both operating cash flow and free cash flow were lower, while revenue was slightly higher.
Monitor the trajectory of operating cash flow in upcoming quarters.