Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved and capital expenditure decreased, resulting in positive free cash flow with a higher margin. Compared to the prior quarter and the same quarter last year, cash generation strengthened considerably.
- Revenue increased while operating cash flow rose more sharply, yielding a positive free cash flow margin after capital expenditure was reduced.
- Compared to the prior quarter, free cash flow turned from negative to positive with a margin swing from negative to positive. Versus the same quarter a year ago, free cash flow improved from deeply negative to positive, supported by lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$159.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$421.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
12.4%
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 | $2.7B | $1.1B | $1.1B | -$3.7M | -0.1% |
| 2024-03-31 | $2.8B | $521.1M | $961.2M | -$440.1M | -15.7% |
| 2024-06-30 | $3.0B | $1.0B | $1.2B | -$137.8M | -4.7% |
| 2024-09-30 | $3.4B | $1.6B | $1.1B | $421.8M | 12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 33.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$26.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Operating Cash Flow
Operating cash flow increased relative to both the prior quarter and the same quarter a year ago, providing a stronger base for free cash flow.
This was the strongest observable driver behind the positive free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose more sharply, yielding a positive free cash flow margin after capital expenditure was reduced.
Compared to the prior quarter, free cash flow turned from negative to positive with a margin swing from negative to positive. Versus the same quarter a year ago, free cash flow improved from deeply negative to positive, supported by lower capital expenditure.
Monitor the level of capital expenditure, as a significant portion of operating cash flow continues to be allocated to spending.