Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter one year earlier. Free cash flow margin was lower than the prior quarter but higher than the year-ago quarter.
- Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, while capital expenditure was slightly lower than the prior quarter. The resulting free cash flow margin weakened sequentially but improved relative to the year-ago period.
- Compared with the prior quarter, revenue was higher while operating cash flow and free cash flow were lower, leading to a lower free cash flow margin. Compared with the year-ago quarter, all metrics were higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.8B
Cash generated by operations before capital spending.
CapEx
$95.0M
Capital spending and related asset purchases.
FCF margin
63.3%
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 | $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% |
| 2024-12-31 | $7.5B | $4.8B | $95.0M | $4.7B | 63.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 141.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.8B | 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 revenue growth
Revenue was higher compared to both the prior quarter and the year-ago quarter. This supported higher operating cash flow and free cash flow relative to the year-ago period, contributing to an improved free cash flow margin.
Compared to the year-ago quarter, free cash flow margin was higher, consistent with the increase in revenue and operating cash flow.
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 higher than the year-ago quarter, while capital expenditure was slightly lower than the prior quarter. The resulting free cash flow margin weakened sequentially but improved relative to the year-ago period.
Compared with the prior quarter, revenue was higher while operating cash flow and free cash flow were lower, leading to a lower free cash flow margin. Compared with the year-ago quarter, all metrics were higher, and the free cash flow margin improved.
The sequential decline in free cash flow margin despite higher revenue merits monitoring, as the company’s liquidity discussion emphasizes reliance on cash generated from operations.