Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Alphabet's free cash flow rose sharply in the quarter, driven by a strong increase in operating cash flow. The free cash flow margin improved compared to both the preceding quarter and the year-ago period.
- Operating cash flow grew faster than revenue, and capital expenditure increased at a slower pace, resulting in higher free cash flow and a wider margin.
- Revenue, operating cash flow, and free cash flow all increased compared to both the prior quarter and the same quarter last year. The free cash flow margin improved relative to both periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$72.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$24.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$39.1B
Cash generated by operations before capital spending.
CapEx
$14.3B
Capital spending and related asset purchases.
FCF margin
25.7%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $80.5B | $28.8B | $12.0B | $16.8B | 20.9% |
| 2024-06-30 | $84.7B | $26.6B | $13.2B | $13.5B | 15.9% |
| 2024-09-30 | $88.3B | $30.7B | $13.1B | $17.6B | 20.0% |
| 2024-12-31 | $96.5B | $39.1B | $14.3B | $24.8B | 25.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $11.5B | 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 expansion
Operating cash flow rose more than revenue and capital expenditure, leading to a significant increase in free cash flow and margin.
The improvement in free cash flow margin strengthened the company's cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew faster than revenue, and capital expenditure increased at a slower pace, resulting in higher free cash flow and a wider margin.
Revenue, operating cash flow, and free cash flow all increased compared to both the prior quarter and the same quarter last year. The free cash flow margin improved relative to both periods.
Monitor the trajectory of the free cash flow margin relative to revenue growth.