Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared to both the prior quarter and the same quarter last year. The free cash flow margin improved year over year but was slightly lower than the preceding quarter.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in a free cash flow margin above thirty percent. The conversion from revenue to free cash flow remained strong, supported by a relatively low level of capital spending.
- Compared to the prior quarter, revenue and operating cash flow were higher, while the free cash flow margin was slightly lower. Versus the same quarter a year ago, all metrics improved, with capital expenditure notably lower and free cash flow margin higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$76.0M
Capital spending and related asset purchases.
FCF margin
31.0%
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 | $6.5B | -$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% |
| 2024-12-31 | $6.1B | $2.0B | $76.0M | $1.9B | 31.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 238.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.5B | 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 Growth
Operating cash flow increased from both the prior quarter and the same quarter last year, providing the primary support for the rise in free cash flow. This improvement occurred alongside higher revenue.
Higher operating cash flow directly drove free cash flow higher, reinforcing the company's cash generation strength.
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 free cash flow margin above thirty percent. The conversion from revenue to free cash flow remained strong, supported by a relatively low level of capital spending.
Compared to the prior quarter, revenue and operating cash flow were higher, while the free cash flow margin was slightly lower. Versus the same quarter a year ago, all metrics improved, with capital expenditure notably lower and free cash flow margin higher.
Monitor the trend in capital expenditure, which decreased compared to both the prior quarter and the year-ago period, as a sustained low level may affect future operating capacity.