Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved year-over-year but weakened sequentially, driven by changes in operating cash flow and capital expenditure. The free cash flow margin rose from the prior year but fell from the previous quarter.
- Revenue was stable sequentially and higher year-over-year. Operating cash flow decreased from the prior quarter but increased from the same quarter last year, while capital expenditure rose both sequentially and year-over-year. The resulting free cash flow and margin followed the same pattern as operating cash flow.
- Compared to the previous quarter, free cash flow and margin were lower due to a decline in operating cash flow and higher capital spending. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow despite a modest increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$503.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$628.0M
Cash generated by operations before capital spending.
CapEx
$125.0M
Capital spending and related asset purchases.
FCF margin
12.9%
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 | $297.0M | $154.0M | $143.0M | 3.7% |
| 2024-03-31 | $3.5B | $85.0M | $158.0M | -$73.0M | -2.1% |
| 2024-06-30 | $3.9B | $657.0M | $115.0M | $542.0M | 13.8% |
| 2024-09-30 | $3.9B | $628.0M | $125.0M | $503.0M | 12.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year operating cash flow growth
Operating cash flow rose compared to the same quarter last year, providing the primary support for the improvement in free cash flow. The company's liquidity and capital resources discussion highlights ongoing productivity initiatives and gross margin enhancement strategies.
Higher operating cash flow drove the year-over-year increase in free cash flow and margin, despite slightly higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year-over-year. Operating cash flow decreased from the prior quarter but increased from the same quarter last year, while capital expenditure rose both sequentially and year-over-year. The resulting free cash flow and margin followed the same pattern as operating cash flow.
Compared to the previous quarter, free cash flow and margin were lower due to a decline in operating cash flow and higher capital spending. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow despite a modest increase in capital expenditure.
Monitor capital expenditure trends, as they increased both sequentially and year-over-year, which could affect future free cash flow generation.