Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow for the quarter improved compared to both the prior quarter and the same quarter last year. The cash conversion strengthened as operating cash flow increased relative to revenue, while capital expenditure was lower.
- Operating cash flow converted into free cash flow at a higher margin, driven by higher operating cash flow and a lower capital expenditure, resulting in an improved free cash flow margin.
- Revenue was slightly lower than the immediate prior quarter but higher than the same quarter last year. Operating cash flow, free cash flow, and free cash flow margin were all higher than both the previous quarter and the year-ago quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$183.0M
Capital spending and related asset purchases.
FCF margin
17.7%
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 | $6.0B | $1.3B | $243.0M | $1.1B | 17.7% |
| 2024-03-31 | $5.9B | $475.0M | $183.0M | $292.0M | 4.9% |
| 2024-06-30 | $6.3B | $946.0M | $187.0M | $759.0M | 12.0% |
| 2024-09-30 | $6.3B | $1.3B | $183.0M | $1.1B | 17.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.9B | 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 Growth
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, while revenue was stable relative to those periods.
This operating cash flow improvement was the primary observable driver of the higher 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 converted into free cash flow at a higher margin, driven by higher operating cash flow and a lower capital expenditure, resulting in an improved free cash flow margin.
Revenue was slightly lower than the immediate prior quarter but higher than the same quarter last year. Operating cash flow, free cash flow, and free cash flow margin were all higher than both the previous quarter and the year-ago quarter.
Monitor whether the lower capital expenditure level persists or reverts toward prior levels in subsequent quarters.