Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow and free cash flow margin improved sequentially and were slightly higher year over year.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin improved compared to both the prior quarter and the year-ago quarter, indicating a stronger conversion of revenue into free cash flow.
- Compared to the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were slightly higher, and free cash flow margin was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$73.0M
Capital spending and related asset purchases.
FCF margin
32.3%
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 | $5.6B | $1.8B | $120.0M | $1.7B | 29.9% |
| 2024-03-31 | $6.5B | -$781.0M | $87.0M | -$868.0M | -13.4% |
| 2024-06-30 | $6.2B | $1.2B | $80.0M | $1.1B | 18.2% |
| 2024-09-30 | $5.7B | $1.9B | $73.0M | $1.8B | 32.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 246.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Cash Generation
Operating cash flow rose sequentially despite lower revenue, and free cash flow margin improved. This was the strongest observable driver of the quarter's performance.
Higher operating cash flow relative to revenue drove the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin improved compared to both the prior quarter and the year-ago quarter, indicating a stronger conversion of revenue into free cash flow.
Compared to the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were slightly higher, and free cash flow margin was stable.
Monitor the relationship between revenue and operating cash flow, as revenue declined sequentially but operating cash flow increased.