Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the same quarter last year, while free cash flow improved sequentially but was slightly below the year-ago level. The free cash flow margin strengthened from the prior quarter and remained broadly stable compared to the year-ago period.
- Operating cash flow was higher than the prior quarter and matched the year-ago level, while capital expenditure was lower than the prior quarter and slightly lower than a year ago. These changes drove an increase in free cash flow and a higher free cash flow margin relative to the prior quarter.
- Compared to the prior quarter, revenue was lower, operating cash flow improved, capital expenditure decreased, and free cash flow increased. Versus the same quarter last year, revenue was lower, operating cash flow was stable, capital expenditure was slightly lower, and free cash flow was lower.
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
$786.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$877.0M
Capital spending and related asset purchases.
FCF margin
20.7%
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 | $3.8B | $1.7B | $910.0M | $827.0M | 21.6% |
| 2024-03-31 | $3.7B | $1.7B | $894.0M | $844.0M | 22.6% |
| 2024-06-30 | $3.9B | $1.5B | $948.0M | $587.0M | 15.1% |
| 2024-09-30 | $3.8B | $1.7B | $877.0M | $786.0M | 20.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 23.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger operating cash flow and lower capex
Operating cash flow increased from the prior quarter while capital expenditure decreased, resulting in a notable improvement in free cash flow. This combination of higher cash generation and lower spending drove the sequential gain.
The sequential improvement in free cash flow and margin underscores a more efficient cash conversion pattern 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 than the prior quarter and matched the year-ago level, while capital expenditure was lower than the prior quarter and slightly lower than a year ago. These changes drove an increase in free cash flow and a higher free cash flow margin relative to the prior quarter.
Compared to the prior quarter, revenue was lower, operating cash flow improved, capital expenditure decreased, and free cash flow increased. Versus the same quarter last year, revenue was lower, operating cash flow was stable, capital expenditure was slightly lower, and free cash flow was lower.
Monitor the trend of capital expenditure relative to operating cash flow, as changes in spending can significantly influence free cash flow generation.