Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter and the year-ago quarter, while free cash flow margin declined in both comparisons. Operating cash flow remained stable, but higher capital expenditure reduced free cash flow.
- Revenue rose, yet free cash flow margin weakened as capital expenditure grew faster than operating cash flow. The conversion from revenue to free cash flow was less efficient compared to both the prior quarter and the same quarter last year.
- Compared to the prior quarter, revenue was higher, operating cash flow was stable, capital expenditure was higher, and free cash flow was lower with a weakened margin. Versus the year-ago quarter, revenue was higher, operating cash flow was stable, capital expenditure was higher, and free cash flow was lower with a weakened margin.
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
$738.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$926.0M
Capital spending and related asset purchases.
FCF margin
16.4%
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 | $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% |
| 2024-12-31 | $4.5B | $1.7B | $926.0M | $738.0M | 16.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the year-ago quarter, while operating cash flow remained unchanged. This was the strongest observable factor behind the decline in free cash flow and margin.
Higher capital expenditure directly reduced free cash flow and margin, despite stable operating cash flow and higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose, yet free cash flow margin weakened as capital expenditure grew faster than operating cash flow. The conversion from revenue to free cash flow was less efficient compared to both the prior quarter and the same quarter last year.
Compared to the prior quarter, revenue was higher, operating cash flow was stable, capital expenditure was higher, and free cash flow was lower with a weakened margin. Versus the year-ago quarter, revenue was higher, operating cash flow was stable, capital expenditure was higher, and free cash flow was lower with a weakened margin.
Monitor the trend in capital expenditure relative to operating cash flow, as higher spending has compressed free cash flow despite stable cash generation.