Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher than a year ago. Free cash flow and free cash flow margin weakened sharply from the prior quarter and were lower than the same quarter last year.
- Operating cash flow decreased from the prior quarter and was slightly lower than a year ago, while capital expenditure increased sequentially and year-over-year. The combination of lower operating cash flow and higher capital expenditure compressed free cash flow and free cash flow margin.
- Compared to the prior quarter, free cash flow and free cash flow margin declined significantly, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter last year, free cash flow and free cash flow margin were also lower, despite revenue being higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$192.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$34.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$758.0M
Cash generated by operations before capital spending.
CapEx
$724.0M
Capital spending and related asset purchases.
FCF margin
1.5%
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 | $2.1B | $999.0M | $996.0M | $3.0M | 0.1% |
| 2024-03-31 | $2.1B | $598.0M | $707.0M | -$109.0M | -5.1% |
| 2024-06-30 | $2.2B | $912.0M | $648.0M | $264.0M | 12.2% |
| 2024-09-30 | $2.2B | $758.0M | $724.0M | $34.0M | 1.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 11.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 32.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.6B | 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 rose sequentially and year-over-year, while operating cash flow declined from the prior quarter and was slightly below the year-ago level. This divergence was the strongest observable factor behind the weakened free cash flow.
Higher capital expenditure combined with lower operating cash flow reduced free cash flow and free cash flow margin to the lowest level among the three periods presented.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased from the prior quarter and was slightly lower than a year ago, while capital expenditure increased sequentially and year-over-year. The combination of lower operating cash flow and higher capital expenditure compressed free cash flow and free cash flow margin.
Compared to the prior quarter, free cash flow and free cash flow margin declined significantly, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter last year, free cash flow and free cash flow margin were also lower, despite revenue being higher.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the current quarter's elevated capex absorbed a larger share of operating cash flow.