Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both rose, pushing free cash flow and margin higher. The sequential improvement was much stronger than the year-over-year gain.
- Operating cash flow improved more than revenue, yielding a higher free cash flow margin. Capital expenditure remained relatively stable, so the conversion gain came from stronger cash generation on higher revenue.
- Compared with the prior quarter, revenue, operating cash flow, free cash flow, and margin all increased significantly. Compared with the same quarter a year ago, each metric also improved, though the year-over-year gains were more moderate.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.1B
Cash generated by operations before capital spending.
CapEx
$107.0M
Capital spending and related asset purchases.
FCF margin
68.2%
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 | $6.5B | $4.1B | $77.0M | $4.1B | 61.9% |
| 2024-03-31 | $6.3B | $1.7B | $157.0M | $1.5B | 23.9% |
| 2024-06-30 | $7.0B | $3.1B | $115.0M | $3.0B | 43.4% |
| 2024-09-30 | $7.4B | $5.1B | $107.0M | $5.0B | 68.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 154.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.3B | 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 surge
Operating cash flow rose sharply from both the prior quarter and the year-ago quarter, far outpacing the growth in revenue. This was the strongest observable driver of the improvement in free cash flow.
The elevated operating cash flow directly lifted free cash flow and margin to their highest levels among the periods shown.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved more than revenue, yielding a higher free cash flow margin. Capital expenditure remained relatively stable, so the conversion gain came from stronger cash generation on higher revenue.
Compared with the prior quarter, revenue, operating cash flow, free cash flow, and margin all increased significantly. Compared with the same quarter a year ago, each metric also improved, though the year-over-year gains were more moderate.
Monitor the consistency of operating cash flow growth relative to revenue, as the current quarter showed an unusually large sequential increase.