Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow was higher than both the prior quarter and the same quarter last year, driven by a higher operating cash flow. The company's filing notes a strong emphasis on cash flow generation underpinned by operating discipline focused on cost control and working capital management.
- Revenue increased compared to the prior quarter and the same quarter last year. Operating cash flow rose more than proportionally, and while capital expenditure also increased, free cash flow improved, resulting in a higher free cash flow margin.
- Compared to the prior quarter, all key metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher. The same pattern holds against the same quarter one year earlier, with notable improvements in operating cash flow and free cash flow margin.
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
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$355.0M
Capital spending and related asset purchases.
FCF margin
13.5%
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 | $10.7B | -$278.0M | $159.0M | -$437.0M | -4.1% |
| 2024-06-30 | $12.0B | $814.0M | $201.0M | $613.0M | 5.1% |
| 2024-09-29 | $11.7B | $1.4B | $201.0M | $1.2B | 10.4% |
| 2024-12-31 | $13.3B | $2.2B | $355.0M | $1.8B | 13.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 157.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.1B | 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 improvement
Operating cash flow rose compared to both the prior quarter and the same quarter last year, providing the primary lift to free cash flow. This increase occurred even as revenue grew, reflecting stronger cash generation from operations.
This improvement supports the company's capital deployment priorities as described in the filing, including investments in infrastructure, products, and services.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to the prior quarter and the same quarter last year. Operating cash flow rose more than proportionally, and while capital expenditure also increased, free cash flow improved, resulting in a higher free cash flow margin.
Compared to the prior quarter, all key metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher. The same pattern holds against the same quarter one year earlier, with notable improvements in operating cash flow and free cash flow margin.
Monitor the level of capital expenditure relative to operating cash flow, as it increased this quarter and may affect future free cash flow conversion.