Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to the prior quarter and operating cash flow increased, leading to a substantial improvement in free cash flow and margin. The current quarter's free cash flow margin was higher than both the preceding quarter and the same quarter one year earlier.
- Operating cash flow was generated at a higher level relative to revenue, and capital expenditure increased only modestly, resulting in a higher free cash flow conversion.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin rising. Compared to the same quarter one year earlier, revenue was lower but operating cash flow was higher, and free cash flow and margin were also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$573.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$164.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$756.3M
Cash generated by operations before capital spending.
CapEx
$591.6M
Capital spending and related asset purchases.
FCF margin
10.1%
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 | $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% |
| 2024-12-31 | $1.6B | $756.3M | $591.6M | $164.7M | 10.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 39.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 36.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.1B | 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 Performance
Operating cash flow was higher than both the prior quarter and the year-ago quarter, even though revenue was lower than the year-ago period.
This higher cash generation drove the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was generated at a higher level relative to revenue, and capital expenditure increased only modestly, resulting in a higher free cash flow conversion.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin rising. Compared to the same quarter one year earlier, revenue was lower but operating cash flow was higher, and free cash flow and margin were also higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it significantly influences free cash flow outcomes.