Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, supported by higher operating cash flow. Revenue improved compared to both the prior quarter and the same quarter last year.
- With revenue higher, operating cash flow increased substantially, while capital expenditure rose only moderately. This resulted in free cash flow turning positive and a significant improvement in free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow improved, capital expenditure was slightly higher, and free cash flow moved from negative to positive. Versus the same quarter one year earlier, revenue was higher, operating cash flow improved, capital expenditure was slightly higher, and free cash flow also turned positive from negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$499.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$23.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$593.0M
Cash generated by operations before capital spending.
CapEx
$569.5M
Capital spending and related asset purchases.
FCF margin
1.8%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $2.0B | $624.4M | $533.1M | $91.2M | 4.5% |
| 2024-03-31 | $1.4B | $1.2B | $534.5M | $621.2M | 44.0% |
| 2024-06-30 | $952.5M | $322.0M | $558.2M | -$236.1M | -24.8% |
| 2024-09-30 | $1.3B | $593.0M | $569.5M | $23.5M | 1.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -7.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 44.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.7B | 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 increase
Operating cash flow rose significantly compared to both the prior quarter and the same period last year, more than covering the capital expenditure.
This was the primary factor behind the swing to positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue higher, operating cash flow increased substantially, while capital expenditure rose only moderately. This resulted in free cash flow turning positive and a significant improvement in free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow improved, capital expenditure was slightly higher, and free cash flow moved from negative to positive. Versus the same quarter one year earlier, revenue was higher, operating cash flow improved, capital expenditure was slightly higher, and free cash flow also turned positive from negative.
Monitor the trend in operating cash flow to assess if this quarter's improvement is sustainable.