Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was positive but lower than the prior quarter and a year ago, driven by a lower operating cash flow and a higher capital expenditure relative to prior quarter. The free cash flow margin weakened compared with both prior periods.
- Revenue increased relative to both comparable periods, yet operating cash flow declined sequentially and also decreased from the prior year, resulting in a lower free cash flow. The free cash flow margin narrowed as capital expenditure rose compared with the previous quarter.
- Compared with the immediately preceding quarter, revenue improved but operating cash flow and free cash flow both decreased, and the margin weakened significantly. Versus the same quarter one year ago, revenue was higher while operating cash flow, free cash flow, and the margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$757.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$137.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$397.0M
Cash generated by operations before capital spending.
CapEx
$260.0M
Capital spending and related asset purchases.
FCF margin
3.5%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $3.9B | $395.0M | $251.0M | $144.0M | 3.7% |
| 2024-06-30 | $5.4B | $365.0M | $198.0M | $167.0M | 3.1% |
| 2024-09-30 | $2.6B | $521.0M | $212.0M | $309.0M | 12.1% |
| 2024-12-31 | $3.9B | $397.0M | $260.0M | $137.0M | 3.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -93.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.5B | 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 decline
The strongest observable driver was the reduction in operating cash flow, which decreased versus both the prior quarter and the year-ago period, even as revenue rose. This directly lowered free cash flow and compressed the margin.
If operating cash flow fails to align with revenue growth, free cash flow generation may continue to weaken.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased relative to both comparable periods, yet operating cash flow declined sequentially and also decreased from the prior year, resulting in a lower free cash flow. The free cash flow margin narrowed as capital expenditure rose compared with the previous quarter.
Compared with the immediately preceding quarter, revenue improved but operating cash flow and free cash flow both decreased, and the margin weakened significantly. Versus the same quarter one year ago, revenue was higher while operating cash flow, free cash flow, and the margin were all lower.
Monitor operating cash flow trends relative to revenue to assess whether the decline is persistent.