Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter, while free cash flow and margin strengthened. Versus the same quarter last year, operating cash flow and free cash flow were lower, and the margin weakened.
- Operating cash flow exceeded revenue by a wide margin, resulting in a free cash flow margin above four hundred percent. Capital expenditure remained stable relative to operating cash flow, supporting high cash conversion.
- Compared to the prior quarter, revenue was slightly higher and operating cash flow improved, leading to higher free cash flow and a stronger margin. Versus the same quarter last year, revenue was higher but operating cash flow was lower, resulting in lower free cash flow and a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$60.0M
Capital spending and related asset purchases.
FCF margin
438.5%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $6.4B | $1.6B | $64.0M | $1.6B | 24.4% |
| 2024-03-31 | $352.0M | $1.1B | $50.0M | $1.0B | 297.4% |
| 2024-06-30 | $364.0M | $1.3B | $61.0M | $1.2B | 329.4% |
| 2024-09-30 | $369.0M | $1.7B | $60.0M | $1.6B | 438.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 211.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.3% | 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.
Operating Cash Flow Improvement
Operating cash flow increased from the prior quarter, driving a higher free cash flow and margin. This was the strongest observable driver of the quarter's cash generation.
The improvement in operating cash flow directly lifted free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue by a wide margin, resulting in a free cash flow margin above four hundred percent. Capital expenditure remained stable relative to operating cash flow, supporting high cash conversion.
Compared to the prior quarter, revenue was slightly higher and operating cash flow improved, leading to higher free cash flow and a stronger margin. Versus the same quarter last year, revenue was higher but operating cash flow was lower, resulting in lower free cash flow and a weaker margin.
Monitor the trend in operating cash flow relative to revenue, as it declined year over year despite higher revenue.