Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive from a negative position a year earlier, driving a substantial free cash flow margin. Revenue was lower than the prior quarter but nearly flat versus the same quarter last year.
- Revenue was lower than the prior quarter, yet operating cash flow improved significantly from a negative level a year ago, resulting in a positive free cash flow margin. Capital expenditure was reduced compared with both the prior quarter and the year-ago quarter, supporting free cash flow.
- Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared with the same quarter one year earlier, revenue was stable, while operating cash flow, free cash flow, and free cash flow margin improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$633.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$646.7M
Cash generated by operations before capital spending.
CapEx
$13.3M
Capital spending and related asset purchases.
FCF margin
8.3%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $9.1B | -$316.7M | $23.7M | -$340.4M | -3.7% |
| 2024-06-30 | $10.0B | $698.3M | $62.0M | $636.3M | 6.4% |
| 2024-09-30 | $10.0B | $2.0B | $32.0M | $1.9B | 19.3% |
| 2024-12-31 | $7.6B | $646.7M | $13.3M | $633.4M | 8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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 compared with a negative figure in the same quarter last year, while capital expenditure was lower. This combination drove a positive free cash flow margin.
Free cash flow improved from negative to positive year over year, despite revenue being nearly unchanged.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, yet operating cash flow improved significantly from a negative level a year ago, resulting in a positive free cash flow margin. Capital expenditure was reduced compared with both the prior quarter and the year-ago quarter, supporting free cash flow.
Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared with the same quarter one year earlier, revenue was stable, while operating cash flow, free cash flow, and free cash flow margin improved from negative to positive.
Monitor the trend in operating cash flow, as it shifted from negative a year ago to positive but declined from the prior quarter.