Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue in the current quarter was higher than both the prior quarter and the same quarter last year. Free cash flow margin improved from negative to positive compared to the prior quarter, but weakened versus the same quarter one year earlier.
- Operating cash flow was higher relative to revenue, resulting in a free cash flow margin above one hundred percent. Capital expenditure was lower than operating cash flow, supporting positive free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher; free cash flow margin improved from negative to positive. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.2B
Cash generated by operations before capital spending.
CapEx
$181.0M
Capital spending and related asset purchases.
FCF margin
100.4%
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 | $4.5B | -$2.6B | $148.0M | -$2.8B | -61.4% |
| 2024-06-30 | $6.1B | $451.0M | $114.0M | $337.0M | 5.5% |
| 2024-09-30 | $2.3B | $130.0M | $154.0M | -$24.0M | -1.0% |
| 2024-12-31 | $4.0B | $4.2B | $181.0M | $4.0B | 100.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -9736.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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.
Revenue Growth Supporting Cash Generation
Revenue increased compared to both the prior quarter and the same quarter last year, which was the strongest observable driver of the cash flow improvement this quarter.
Higher revenue contributed to a higher operating cash flow and a positive free cash flow margin 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 was higher relative to revenue, resulting in a free cash flow margin above one hundred percent. Capital expenditure was lower than operating cash flow, supporting positive free cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher; free cash flow margin improved from negative to positive. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor whether the free cash flow margin can sustain above the prior quarter's level, given the decline from the year-ago margin.