Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased compared to the previous quarter and the same period last year, supported by higher operating cash flow. The free cash flow margin improved as revenue growth outpaced capital spending.
- Operating cash flow rose more than capital expenditure, leading to higher free cash flow and a stronger margin. The increase in revenue contributed to the improved conversion of earnings into cash.
- Compared to the prior quarter, all key metrics improved: revenue, operating cash flow, and free cash flow were higher, with the margin strengthening. Relative to the same quarter a year earlier, operating cash flow and free cash flow were also higher, while capital expenditure remained relatively stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$571.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$721.0M
Cash generated by operations before capital spending.
CapEx
$150.0M
Capital spending and related asset purchases.
FCF margin
14.7%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $3.9B | $747.0M | $179.0M | $568.0M | 14.7% |
| 2024-03-31 | $3.7B | $522.0M | $145.0M | $377.0M | 10.1% |
| 2024-06-30 | $3.8B | $588.0M | $143.0M | $445.0M | 11.7% |
| 2024-09-30 | $3.9B | $721.0M | $150.0M | $571.0M | 14.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 200.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth and Operating Cash Flow
The primary driver was higher operating cash flow, which expanded more than capital expenditure, resulting in a larger free cash flow and an improved margin. This reflects the company's ability to convert revenue into cash effectively during the quarter.
The improvement in free cash flow strengthens the company's liquidity position, which is noted as the principal source of liquidity.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose more than capital expenditure, leading to higher free cash flow and a stronger margin. The increase in revenue contributed to the improved conversion of earnings into cash.
Compared to the prior quarter, all key metrics improved: revenue, operating cash flow, and free cash flow were higher, with the margin strengthening. Relative to the same quarter a year earlier, operating cash flow and free cash flow were also higher, while capital expenditure remained relatively stable.
Monitor whether capital expenditure increases in future quarters relative to operating cash flow, as that could pressure free cash flow.