Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from a negative position a year earlier, though it decreased sharply from the prior quarter. Operating cash flow was the primary driver of the sequential decline.
- Revenue was stable sequentially and higher year-over-year. Operating cash flow was positive but significantly lower than the prior quarter, while capital expenditure remained relatively stable. This resulted in a free cash flow margin that improved from a negative level a year ago but weakened from the previous quarter.
- Compared to the prior quarter, free cash flow and margin were lower, driven by a substantial decrease in operating cash flow. Compared to the same quarter last year, free cash flow and margin improved, as operating cash flow turned positive from a negative position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$384.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$706.0M
Cash generated by operations before capital spending.
CapEx
$322.0M
Capital spending and related asset purchases.
FCF margin
0.8%
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 | $42.6B | $2.0B | $279.0M | $1.7B | 4.0% |
| 2024-06-30 | $43.9B | $447.0M | $323.0M | $124.0M | 0.3% |
| 2024-09-30 | $45.1B | $2.7B | $332.0M | $2.3B | 5.2% |
| 2024-12-31 | $45.4B | $706.0M | $322.0M | $384.0M | 0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.6B | 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 Volatility
Operating cash flow decreased significantly from the prior quarter, while capital expenditure remained stable. This was the strongest observable driver of the sequential decline in free cash flow.
The lower operating cash flow directly reduced free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year-over-year. Operating cash flow was positive but significantly lower than the prior quarter, while capital expenditure remained relatively stable. This resulted in a free cash flow margin that improved from a negative level a year ago but weakened from the previous quarter.
Compared to the prior quarter, free cash flow and margin were lower, driven by a substantial decrease in operating cash flow. Compared to the same quarter last year, free cash flow and margin improved, as operating cash flow turned positive from a negative position.
Monitor the level of operating cash flow in the upcoming quarter, as it was the main factor behind the sequential decline in free cash flow.