Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved markedly compared with the same quarter last year but declined from the preceding quarter. The free cash flow margin strengthened year over year while weakening sequentially.
- Revenue and operating cash flow were higher than a year ago, while capital expenditure was stable, resulting in a higher free cash flow margin year over year. Sequentially, operating cash flow declined and capital expenditure increased, leading to lower free cash flow and margin.
- Compared with the prior quarter, revenue increased but operating cash flow, free cash flow, and free cash flow margin all weakened. Relative to the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$673.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$1.2B
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $5.8B | $1.3B | $1.4B | -$42.0M | -0.7% |
| 2024-03-31 | $6.2B | $1.9B | $1.3B | $642.0M | 10.3% |
| 2024-06-30 | $6.4B | $2.0B | $1.1B | $840.0M | 13.1% |
| 2024-09-30 | $6.7B | $1.9B | $1.2B | $673.0M | 10.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 54.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year operating cash flow improvement
Operating cash flow was higher than the same quarter last year, supporting a stronger free cash flow and margin despite stable capital expenditure.
The year-over-year rise in operating cash flow was the primary contributor to the free cash flow improvement from a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow were higher than a year ago, while capital expenditure was stable, resulting in a higher free cash flow margin year over year. Sequentially, operating cash flow declined and capital expenditure increased, leading to lower free cash flow and margin.
Compared with the prior quarter, revenue increased but operating cash flow, free cash flow, and free cash flow margin all weakened. Relative to the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin all improved.
Monitor the sequential decline in operating cash flow given its direct impact on free cash flow generation.