Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow rose year over year and sequentially, with margin expansion driven by higher operating cash flow relative to revenue. Capital expenditure increased quarter over quarter but declined versus the prior year.
- Revenue increased year over year and sequentially, while operating cash flow grew more quickly, lifting free cash flow margin. Capital expenditure rose from the prior quarter but was lower than a year ago, supporting free cash flow growth.
- Compared to the prior quarter, all key metrics improved: revenue, operating cash flow, free cash flow, and margin were higher. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was lower and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$721.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$885.0M
Cash generated by operations before capital spending.
CapEx
$164.0M
Capital spending and related asset purchases.
FCF margin
18.2%
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 | $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% |
| 2024-12-31 | $4.0B | $885.0M | $164.0M | $721.0M | 18.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 165.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.3B | 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 increased both year over year and sequentially, outpacing revenue growth. This drove a higher free cash flow margin.
The rise in operating cash flow was the primary factor behind the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased year over year and sequentially, while operating cash flow grew more quickly, lifting free cash flow margin. Capital expenditure rose from the prior quarter but was lower than a year ago, supporting free cash flow growth.
Compared to the prior quarter, all key metrics improved: revenue, operating cash flow, free cash flow, and margin were higher. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was lower and margin improved.
Monitor capital expenditure trends, as it increased from the prior quarter and could impact future free cash flow if sustained.