Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved significantly compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow despite slightly lower revenue. Cash conversion strengthened as operating cash flow outpaced capital expenditure growth.
- Revenue was slightly lower than the prior quarter but stable year over year. Operating cash flow increased, capital expenditure rose, and free cash flow was higher, resulting in a stronger free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and margin improved substantially, with operating cash flow higher and revenue slightly lower. Versus the same quarter one year ago, free cash flow and margin also improved, as operating cash flow increased while revenue remained stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$625.0M
Capital spending and related asset purchases.
FCF margin
29.3%
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 | $3.7B | $1.5B | $686.0M | $803.0M | 21.8% |
| 2024-03-31 | $3.7B | $1.1B | $517.0M | $549.0M | 14.9% |
| 2024-06-30 | $3.7B | $1.1B | $549.0M | $558.0M | 15.1% |
| 2024-09-30 | $3.6B | $1.7B | $625.0M | $1.1B | 29.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 118.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.3% | 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 Growth
Operating cash flow increased meaningfully from the prior quarter and year-ago period, while revenue was relatively flat. This drove a higher free cash flow margin despite increased capital spending.
The stronger operating cash flow enabled a significant improvement in free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but stable year over year. Operating cash flow increased, capital expenditure rose, and free cash flow was higher, resulting in a stronger free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and margin improved substantially, with operating cash flow higher and revenue slightly lower. Versus the same quarter one year ago, free cash flow and margin also improved, as operating cash flow increased while revenue remained stable.
Monitor capital expenditure levels, which increased compared to both the prior quarter and the year-ago quarter, as noted in the filing's discussion of higher property additions.