Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but lower than the same quarter last year. Free cash flow margin weakened compared to the prior quarter and was stable versus the year-ago quarter.
- Operating cash flow was lower than the prior quarter but slightly lower than the year-ago quarter. Capital expenditure was higher than both the prior quarter and the year-ago quarter, resulting in free cash flow that was lower than the prior quarter and slightly lower than the year-ago quarter.
- Compared to the prior quarter, revenue improved while operating cash flow and free cash flow weakened. Compared to the same quarter last year, revenue was lower, operating cash flow was slightly lower, and free cash flow was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$592.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$657.0M
Capital spending and related asset purchases.
FCF margin
18.0%
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 | $3.6B | $2.3B | $628.0M | $1.7B | 47.5% |
| 2024-03-31 | $3.4B | $1.2B | $619.0M | $570.0M | 16.7% |
| 2024-06-30 | $3.2B | $1.7B | $581.0M | $1.1B | 34.4% |
| 2024-09-30 | $3.3B | $1.2B | $657.0M | $592.0M | 18.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 94.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$31.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the year-ago quarter, which was the strongest observable factor reducing free cash flow relative to the prior quarter.
Higher capital expenditure absorbed a larger share of operating cash flow, compressing free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but slightly lower than the year-ago quarter. Capital expenditure was higher than both the prior quarter and the year-ago quarter, resulting in free cash flow that was lower than the prior quarter and slightly lower than the year-ago quarter.
Compared to the prior quarter, revenue improved while operating cash flow and free cash flow weakened. Compared to the same quarter last year, revenue was lower, operating cash flow was slightly lower, and free cash flow was slightly lower.
Monitor the relationship between operating cash flow and capital expenditure, as capital expenditure increased while operating cash flow declined sequentially.