Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue was slightly lower than the prior quarter and the year-ago quarter, but operating cash flow increased, leading to higher free cash flow. Capital expenditure was lower than a year ago, further supporting free cash flow generation.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, while revenue was slightly lower. Versus the same quarter one year earlier, free cash flow and margin were also higher, with operating cash flow improved and capital expenditure reduced.
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
$996.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$118.0M
Capital spending and related asset purchases.
FCF margin
25.3%
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 | $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% |
| 2024-12-31 | $3.9B | $1.1B | $118.0M | $996.0M | 25.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 132.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.1B | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, despite revenue being slightly lower. This was the strongest observable driver of the free cash flow improvement.
Higher operating cash flow directly lifted free cash flow and margin without requiring additional capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter and the year-ago quarter, but operating cash flow increased, leading to higher free cash flow. Capital expenditure was lower than a year ago, further supporting free cash flow generation.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, while revenue was slightly lower. Versus the same quarter one year earlier, free cash flow and margin were also higher, with operating cash flow improved and capital expenditure reduced.
Monitor whether operating cash flow can sustain its improved level relative to revenue in future quarters.