Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow rose slightly from the prior quarter, but a sharp increase in capital expenditure reduced free cash flow and margin year over year and sequentially. Both free cash flow and its margin weakened compared to the same quarter a year ago.
- Revenue was roughly stable relative to the prior quarter, while operating cash flow edged higher. However, capital expenditure increased significantly, resulting in lower free cash flow and a narrower free cash flow margin.
- Compared to the preceding quarter, revenue was slightly higher and operating cash flow was marginally higher, but capital expenditure rose substantially, causing free cash flow to decline. Versus the same quarter one year earlier, every metric was lower: revenue, operating cash flow, capital expenditure (though still lower than the current quarter's), free cash flow, and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$267.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$671.6M
Cash generated by operations before capital spending.
CapEx
$404.0M
Capital spending and related asset purchases.
FCF margin
6.2%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $4.3B | $671.6M | $404.0M | $267.5M | 6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 169.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Growth
Capital expenditure rose notably compared to both the prior quarter and the same quarter last year, while operating cash flow saw only modest increases. This divergence was the primary observable factor behind the decline in free cash flow.
Higher capital spending consumed a larger share of operating cash flow, reducing free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was roughly stable relative to the prior quarter, while operating cash flow edged higher. However, capital expenditure increased significantly, resulting in lower free cash flow and a narrower free cash flow margin.
Compared to the preceding quarter, revenue was slightly higher and operating cash flow was marginally higher, but capital expenditure rose substantially, causing free cash flow to decline. Versus the same quarter one year earlier, every metric was lower: revenue, operating cash flow, capital expenditure (though still lower than the current quarter's), free cash flow, and margin.
Monitor capital expenditure levels, as a sustained increase relative to operating cash flow could continue to pressure free cash flow.