Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow improved sequentially but declined year-over-year, resulting in a mixed free cash flow margin.
- Operating cash flow as a percentage of revenue was higher than the prior quarter but lower than a year ago. Capital expenditure rose both sequentially and year-over-year, leading to a free cash flow margin that improved from the prior quarter but weakened relative to the same quarter last year.
- Versus the preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the margin improved. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$794.0M
Capital spending and related asset purchases.
FCF margin
28.3%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $6.4B | $2.5B | $757.0M | $1.7B | 27.0% |
| 2024-03-31 | $6.2B | $2.4B | $547.0M | $1.8B | 29.9% |
| 2024-06-30 | $6.5B | $1.7B | $628.0M | $1.1B | 16.3% |
| 2024-09-30 | $6.9B | $2.7B | $794.0M | $1.9B | 28.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 86.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 cash flow contraction
Compared to the same quarter last year, operating cash flow was lower even though revenue was higher, and capital expenditure increased. This combination led to a lower free cash flow margin.
The lower operating cash flow and higher capital expenditure resulted in a year-over-year decline in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was higher than the prior quarter but lower than a year ago. Capital expenditure rose both sequentially and year-over-year, leading to a free cash flow margin that improved from the prior quarter but weakened relative to the same quarter last year.
Versus the preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the margin improved. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, and the margin weakened.
The significant reduction in cash and equivalents from the prior year-end, as shown in the balance sheet, is a key item to monitor alongside the free cash flow generation.