Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved significantly in the quarter, driven by higher operating cash flow. Revenue increased, supporting the cash generation.
- Revenue was higher compared to both the prior quarter and the same quarter last year. Operating cash flow strengthened, and capital expenditure increased moderately, resulting in a substantial rise in free cash flow and an improved free cash flow margin.
- Free cash flow margin improved compared to the previous quarter and was significantly higher than the same quarter one year earlier. Both revenue and operating cash flow were higher in the current quarter relative to both comparison periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$684.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$849.0M
Cash generated by operations before capital spending.
CapEx
$165.0M
Capital spending and related asset purchases.
FCF margin
16.8%
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 | $3.5B | $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% |
| 2024-12-31 | $4.1B | $849.0M | $165.0M | $684.0M | 16.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -475.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.0B | 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
The increase in operating cash flow was the strongest driver of free cash flow improvement, as it grew at a faster rate than capital expenditure. This led to a higher free cash flow margin.
This enhanced cash generation supports the company's ability to fund investments and return capital to shareholders.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher compared to both the prior quarter and the same quarter last year. Operating cash flow strengthened, and capital expenditure increased moderately, resulting in a substantial rise in free cash flow and an improved free cash flow margin.
Free cash flow margin improved compared to the previous quarter and was significantly higher than the same quarter one year earlier. Both revenue and operating cash flow were higher in the current quarter relative to both comparison periods.
Monitor the trend in capital expenditure, which increased sequentially and year over year.