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 sequentially but weakened compared to the same quarter last year. Revenue was stable year over year while operating cash flow was lower and capital expenditure was higher.
- Revenue was unchanged from a year earlier, but operating cash flow was lower, resulting in a lower free cash flow margin despite higher capital expenditure. Sequentially, higher revenue and operating cash flow, combined with a proportionally smaller increase in capital expenditure, drove an improved free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all were higher. Compared to the same quarter a year ago, revenue was stable, while operating cash flow and free cash flow were lower, and capital expenditure was higher, resulting in a weaker free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$738.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$772.0M
Capital spending and related asset purchases.
FCF margin
20.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $3.6B | $1.5B | $772.0M | $738.0M | 20.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$31.8B | 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 Compared to Capital Expenditure
The change in operating cash flow relative to capital expenditure was the strongest observable driver of free cash flow. Operating cash flow rose sequentially but fell compared to a year ago, while capital expenditure rose in both comparisons.
Free cash flow margin improved sequentially but was lower than the same quarter last year, reflecting the combined effect of lower operating cash flow and higher capital expenditure year over year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from a year earlier, but operating cash flow was lower, resulting in a lower free cash flow margin despite higher capital expenditure. Sequentially, higher revenue and operating cash flow, combined with a proportionally smaller increase in capital expenditure, drove an improved free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all were higher. Compared to the same quarter a year ago, revenue was stable, while operating cash flow and free cash flow were lower, and capital expenditure was higher, resulting in a weaker free cash flow margin.
Capital expenditure, which increased both sequentially and year over year, is a concrete item to monitor for its impact on free cash flow.