Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened compared to the same quarter last year. The free cash flow margin rose from the prior quarter but fell sharply from the year-ago period.
- Revenue was lower than the prior quarter, yet operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, free cash flow and margin both improved. Compared to the same quarter last year, free cash flow and margin were lower, while revenue was substantially higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$699.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$883.4M
Cash generated by operations before capital spending.
CapEx
$184.0M
Capital spending and related asset purchases.
FCF margin
36.2%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $2.4B | $529.6M | $145.4M | $384.1M | 15.9% |
| 2024-06-30 | $2.0B | $808.8M | $179.2M | $629.6M | 31.9% |
| 2024-09-30 | $2.0B | $835.7M | $166.3M | $669.5M | 33.5% |
| 2024-12-31 | $1.9B | $883.4M | $184.0M | $699.4M | 36.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 123.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.0B | 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 Growth
Operating cash flow rose from the prior quarter, driving the improvement in free cash flow despite higher capital expenditure. This was the strongest observable driver of the quarter's cash conversion.
Higher operating cash flow more than offset the increase in capital spending, resulting in improved free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, yet operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter.
Compared to the prior quarter, free cash flow and margin both improved. Compared to the same quarter last year, free cash flow and margin were lower, while revenue was substantially higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased sequentially and year over year.