Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow turned positive from the prior quarter's negative, but was slightly lower than the same quarter a year earlier. The improvement in cash conversion was driven by a substantial swing in operating cash flow.
- Revenue was stable compared to both prior periods, while operating cash flow rebounded strongly from the prior quarter's negative level, though it remained below the year-ago figure. Capital expenditure was lower sequentially and year over year, resulting in a free cash flow margin that improved from the prior quarter but weakened relative to the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and margin improved significantly as operating cash flow turned positive. Versus the same quarter one year earlier, free cash flow and margin were slightly lower, with operating cash flow lower despite a similar revenue level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$638.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$291.0M
Capital spending and related asset purchases.
FCF margin
25.4%
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 | $6.0B | $767.0M | $375.0M | $392.0M | 6.5% |
| 2024-06-30 | $6.3B | $1.0B | $269.0M | $752.0M | 12.0% |
| 2024-09-30 | $6.3B | -$1.8B | $246.0M | -$2.0B | -32.3% |
| 2024-12-31 | $6.0B | $1.8B | $291.0M | $1.5B | 25.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 209.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | 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.
Operating Cash Flow Recovery
The most notable change was the swing in operating cash flow from negative to positive, driving the improvement in free cash flow.
This recovery was the primary reason free cash flow turned positive.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to both prior periods, while operating cash flow rebounded strongly from the prior quarter's negative level, though it remained below the year-ago figure. Capital expenditure was lower sequentially and year over year, resulting in a free cash flow margin that improved from the prior quarter but weakened relative to the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and margin improved significantly as operating cash flow turned positive. Versus the same quarter one year earlier, free cash flow and margin were slightly lower, with operating cash flow lower despite a similar revenue level.
Monitor whether operating cash flow can sustain its recent recovery relative to the year-ago level.