Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's cash generation improved significantly versus both the prior quarter and the year-ago period. The strong free cash flow margin reflects a notable rise in operating cash flow relative to revenue.
- Revenue increased while operating cash flow rose sharply, and capital expenditure remained stable, leading to a substantial increase in free cash flow and margin.
- Compared to the prior quarter, free cash flow was higher due to a much larger operating cash flow. Versus the same quarter last year, both revenue and operating cash flow were higher, with free cash flow markedly improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.3B
Cash generated by operations before capital spending.
CapEx
$141.0M
Capital spending and related asset purchases.
FCF margin
55.2%
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 | $7.1B | $2.2B | $215.0M | $2.0B | 27.5% |
| 2024-03-31 | $6.7B | $2.2B | $105.0M | $2.1B | 31.6% |
| 2024-06-30 | $7.0B | $1.3B | $130.0M | $1.2B | 17.2% |
| 2024-09-30 | $7.5B | $4.3B | $141.0M | $4.2B | 55.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 332.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow
Operating cash flow increased significantly while revenue grew moderately, resulting in a high free cash flow margin.
This strong cash generation provides flexibility for strategic investments and capital allocation.
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 sharply, and capital expenditure remained stable, leading to a substantial increase in free cash flow and margin.
Compared to the prior quarter, free cash flow was higher due to a much larger operating cash flow. Versus the same quarter last year, both revenue and operating cash flow were higher, with free cash flow markedly improved.
Monitor the sustainability of the elevated operating cash flow relative to revenue in coming quarters.