Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the quarter ended December 31, 2024, free cash flow turned positive, driven by a shift from negative operating cash flow in the prior quarter and year-ago period. Revenue increased compared to both the preceding quarter and the same quarter last year, while capital expenditure was lower than the year-ago level.
- Operating cash flow improved to a positive figure from negative in both the prior quarter and the year-ago quarter, supporting a positive free cash flow. Free cash flow margin also turned positive, reflecting better cash conversion relative to revenue.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow improved from negative to positive, and free cash flow turned positive from negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow improved from negative to positive, and free cash flow also turned positive from negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$768.0M
Capital spending and related asset purchases.
FCF margin
1.1%
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 | $88.4B | $4.9B | $705.0M | $4.2B | 4.7% |
| 2024-06-30 | $91.2B | $3.1B | $638.0M | $2.5B | 2.7% |
| 2024-09-30 | $95.4B | -$745.0M | $670.0M | -$1.4B | -1.5% |
| 2024-12-31 | $97.7B | $1.9B | $768.0M | $1.1B | 1.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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 Recovery
Operating cash flow turned positive this quarter after being negative in both the prior quarter and the year-ago quarter, which was the primary factor behind the positive free cash flow.
The improvement in operating cash flow directly enabled free cash flow to turn positive, reversing the negative trend seen in the two prior comparable periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved to a positive figure from negative in both the prior quarter and the year-ago quarter, supporting a positive free cash flow. Free cash flow margin also turned positive, reflecting better cash conversion relative to revenue.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow improved from negative to positive, and free cash flow turned positive from negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow improved from negative to positive, and free cash flow also turned positive from negative.
Monitor whether operating cash flow can sustain its positive trajectory given the prior negative quarters.