Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was positive and higher than both the prior quarter and the same quarter last year. The free cash flow margin improved compared to the prior quarter and was slightly above the year-ago level.
- Revenue was higher than the prior quarter and the year-ago quarter, while operating cash flow also increased. Capital expenditure rose, yet free cash flow improved and the free cash flow margin strengthened relative to the preceding quarter and was stable versus the year-ago period.
- Compared to the preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with an improved free cash flow margin. Versus the same quarter one year earlier, revenue was substantially higher, operating cash flow and free cash flow were higher, and the free cash flow margin was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$771.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$877.0M
Capital spending and related asset purchases.
FCF margin
16.7%
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 | $4.0B | $616.0M | $920.0M | -$304.0M | -7.7% |
| 2024-03-31 | $4.0B | $776.0M | $850.0M | -$74.0M | -1.8% |
| 2024-06-30 | $4.4B | $1.4B | $800.0M | $628.0M | 14.3% |
| 2024-09-30 | $4.6B | $1.6B | $877.0M | $771.0M | 16.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 19.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue increase
Revenue was higher than both the preceding quarter and the same quarter one year earlier, providing a larger base from which operating cash flow and free cash flow were generated.
The higher revenue supported improved free cash flow and a stronger free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the year-ago quarter, while operating cash flow also increased. Capital expenditure rose, yet free cash flow improved and the free cash flow margin strengthened relative to the preceding quarter and was stable versus the year-ago period.
Compared to the preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with an improved free cash flow margin. Versus the same quarter one year earlier, revenue was substantially higher, operating cash flow and free cash flow were higher, and the free cash flow margin was slightly higher.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter, as it directly affects future free cash flow.