Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow improved sequentially but declined year-over-year, with the margin reflecting a similar pattern.
- Operating cash flow increased relative to the prior quarter, boosting free cash flow even as capital expenditure rose. Compared to last year, operating cash flow was lower, leading to a weaker free cash flow margin.
- Sequentially, free cash flow margin improved from the prior quarter. Year-over-year, the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$331.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$667.4M
Cash generated by operations before capital spending.
CapEx
$336.3M
Capital spending and related asset purchases.
FCF margin
7.9%
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 | $4.4B | $715.9M | $328.8M | $387.2M | 8.8% |
| 2024-03-31 | $4.4B | $549.3M | $172.1M | $377.2M | 8.6% |
| 2024-06-30 | $4.3B | $474.2M | $238.2M | $236.0M | 5.5% |
| 2024-09-30 | $4.2B | $667.4M | $336.3M | $331.2M | 7.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 179.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential operating cash flow improvement
Operating cash flow rose compared to the prior quarter, more than offsetting the increase in capital expenditure.
This drove free cash flow higher despite lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to the prior quarter, boosting free cash flow even as capital expenditure rose. Compared to last year, operating cash flow was lower, leading to a weaker free cash flow margin.
Sequentially, free cash flow margin improved from the prior quarter. Year-over-year, the margin weakened.
Monitor the level of capital expenditure, which increased both sequentially and year-over-year.