Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased sequentially as operating cash flow rose, leading to an improved margin. Compared to the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weaker margin.
- Revenue was converted into operating cash flow, which after deducting capital expenditure generated free cash flow. The free cash flow margin improved from the prior quarter.
- Compared to the immediately preceding quarter, all key metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher. Versus the same quarter one year ago, revenue was higher but operating cash flow, free cash flow, and margin were lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$909.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$341.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$464.0M
Cash generated by operations before capital spending.
CapEx
$123.0M
Capital spending and related asset purchases.
FCF margin
13.0%
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 | $2.4B | $154.0M | $104.0M | $50.0M | 2.1% |
| 2024-06-30 | $2.4B | $360.0M | $92.0M | $268.0M | 11.2% |
| 2024-09-30 | $2.5B | $356.0M | $106.0M | $250.0M | 10.0% |
| 2024-12-31 | $2.6B | $464.0M | $123.0M | $341.0M | 13.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential operating cash flow improvement
Operating cash flow increased compared to the prior quarter, resulting in a higher free cash flow margin. The improvement was observed even as capital expenditure also rose.
This sequential strengthening in cash generation supports the company’s near-term liquidity profile.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was converted into operating cash flow, which after deducting capital expenditure generated free cash flow. The free cash flow margin improved from the prior quarter.
Compared to the immediately preceding quarter, all key metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher. Versus the same quarter one year ago, revenue was higher but operating cash flow, free cash flow, and margin were lower, while capital expenditure was higher.
Monitor the year-over-year decline in operating cash flow and free cash flow, as the current quarter’s levels were lower than the prior year despite higher revenue.