Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased from the prior quarter and from the same quarter last year, driven by higher operating cash flow despite a slight decline in revenue. The free cash flow margin improved significantly sequentially and modestly year over year.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in a high free cash flow conversion rate. The free cash flow margin improved from the prior quarter and was slightly above the year-ago level.
- Revenue was lower than the prior quarter but stable compared to the same quarter last year. Operating cash flow and free cash flow were higher than both periods, leading to an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$47.0M
Capital spending and related asset purchases.
FCF margin
55.1%
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 | $5.6B | $2.9B | $35.0M | $2.8B | 51.0% |
| 2024-06-30 | $6.2B | -$75.0M | $29.0M | -$104.0M | -1.7% |
| 2024-09-30 | $6.3B | $2.6B | $31.0M | $2.6B | 41.2% |
| 2024-12-31 | $6.0B | $3.3B | $47.0M | $3.3B | 55.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash Conversion Improvement
Operating cash flow rose while revenue fell sequentially, indicating improved cash generation efficiency. Capital expenditure remained low relative to operating cash flow.
This supported a higher free cash flow margin and stronger cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a wide margin, resulting in a high free cash flow conversion rate. The free cash flow margin improved from the prior quarter and was slightly above the year-ago level.
Revenue was lower than the prior quarter but stable compared to the same quarter last year. Operating cash flow and free cash flow were higher than both periods, leading to an improved free cash flow margin.
Monitor the company's reassessment of smoke-free goals due to illicit e-vapor products and enforcement actions, as noted in the filing.