Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially driven by higher operating cash flow and lower capital expenditure, but remained below the prior-year quarter. The free cash flow margin strengthened from the previous quarter while declining from a year ago.
- Revenue was consistent across periods. Operating cash flow increased from the prior quarter, while capital expenditure decreased, resulting in higher free cash flow and an improved margin. Compared to the same quarter last year, operating cash flow and free cash flow were lower despite lower capital expenditure.
- Sequentially, free cash flow and margin improved. Year over year, free cash flow and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$783.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$891.0M
Cash generated by operations before capital spending.
CapEx
$108.0M
Capital spending and related asset purchases.
FCF margin
19.7%
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 | $4.0B | $1.0B | $131.0M | $908.0M | 22.8% |
| 2024-03-31 | $4.0B | $589.0M | $95.0M | $494.0M | 12.4% |
| 2024-06-30 | $4.0B | $687.0M | $116.0M | $571.0M | 14.2% |
| 2024-09-30 | $4.0B | $891.0M | $108.0M | $783.0M | 19.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.4B | 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 Recovery
Operating cash flow rose from the previous quarter, more than offsetting a reduction in capital expenditure. This drove the sequential improvement in free cash flow and margin.
The increase in operating cash flow was the primary factor behind the quarter's free cash flow growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was consistent across periods. Operating cash flow increased from the prior quarter, while capital expenditure decreased, resulting in higher free cash flow and an improved margin. Compared to the same quarter last year, operating cash flow and free cash flow were lower despite lower capital expenditure.
Sequentially, free cash flow and margin improved. Year over year, free cash flow and margin weakened.
Monitor whether operating cash flow can sustain its sequential improvement given the year-over-year decline.