Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow in the current quarter was lower than the preceding quarter due to a decline in operating cash flow, despite a slight increase in revenue and capital expenditure. Compared to the same quarter last year, free cash flow improved as revenue and operating cash flow rose.
- Cash conversion weakened sequentially: revenue rose while operating cash flow and free cash flow both fell, compressing the free cash flow margin. Year over year, cash conversion improved with higher operating cash flow and free cash flow relative to revenue, leading to a stable margin.
- Compared with the preceding quarter, free cash flow and operating cash flow were lower, while revenue was higher and capital expenditure was slightly higher. Versus the same quarter one year ago, all metrics were higher except capital expenditure, which was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$819.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$898.0M
Cash generated by operations before capital spending.
CapEx
$79.0M
Capital spending and related asset purchases.
FCF margin
27.0%
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 | $2.7B | $969.0M | $86.0M | $883.0M | 33.1% |
| 2024-03-31 | $2.8B | $1.0B | $58.0M | $951.0M | 34.0% |
| 2024-06-30 | $2.9B | $1.2B | $75.0M | $1.1B | 38.7% |
| 2024-09-30 | $3.0B | $898.0M | $79.0M | $819.0M | 27.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.4B | 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 decline
Operating cash flow decreased from the prior quarter, which was the strongest observable driver of the lower free cash flow. This shift occurred even as revenue increased, pointing to a change in cash generation efficiency.
The decline in operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened sequentially: revenue rose while operating cash flow and free cash flow both fell, compressing the free cash flow margin. Year over year, cash conversion improved with higher operating cash flow and free cash flow relative to revenue, leading to a stable margin.
Compared with the preceding quarter, free cash flow and operating cash flow were lower, while revenue was higher and capital expenditure was slightly higher. Versus the same quarter one year ago, all metrics were higher except capital expenditure, which was also higher.
Monitor the trend in operating cash flow given its decline from the prior quarter despite a slight revenue increase.