Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were both higher than the prior quarter and the same quarter last year, leading to a substantial free cash flow improvement. The free cash flow margin turned positive after a negative margin in the preceding quarter.
- The conversion from revenue to operating cash flow strengthened compared to both the prior quarter and the year-ago quarter, and capital expenditure increased relative to both periods. The resulting free cash flow was positive and the margin improved markedly, reversing a negative margin in the immediately preceding quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved sharply, and free cash flow margin turned positive from a negative level. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were higher, and margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$969.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$961.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
18.5%
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 | $3.7B | $855.0M | $1.5B | -$602.0M | -16.2% |
| 2024-03-31 | $4.1B | $1.0B | $1.3B | -$236.0M | -5.8% |
| 2024-06-30 | $4.3B | $329.0M | $1.4B | -$1.1B | -25.2% |
| 2024-09-30 | $5.2B | $2.5B | $1.5B | $961.0M | 18.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 186.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 29.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$34.7B | 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 improvement
Operating cash flow increased markedly relative to both the prior quarter and the year-ago quarter, providing the main observable lift to free cash flow. This improvement, combined with only a modest increase in capital expenditure, drove free cash flow higher.
Stronger cash generation from operations was the primary observable factor behind the positive free cash flow and improved margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion from revenue to operating cash flow strengthened compared to both the prior quarter and the year-ago quarter, and capital expenditure increased relative to both periods. The resulting free cash flow was positive and the margin improved markedly, reversing a negative margin in the immediately preceding quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved sharply, and free cash flow margin turned positive from a negative level. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were higher, and margin also improved.
Regulatory proceedings and the capital investment plan, discussed in the filing context under liquidity and capital resources, may affect future capital expenditure and cost recovery.