Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher compared to both the prior quarter and the same quarter last year. Free cash flow turned positive, and the free cash flow margin improved significantly.
- Operating cash flow increased at a faster pace than revenue, leading to improved cash conversion. Capital expenditure remained stable, allowing the operating cash flow growth to flow directly into free cash flow.
- Compared to the previous quarter, revenue, operating cash flow, and free cash flow were all higher, resulting in an improved free cash flow margin. Year-over-year, the company moved from a negative free cash flow margin to a positive one, with operating cash flow more than offsetting capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$875.0M
Capital spending and related asset purchases.
FCF margin
28.9%
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 | $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% |
| 2024-12-31 | $5.7B | $2.5B | $875.0M | $1.6B | 28.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | 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 Improvement
Operating cash flow was higher than both the previous quarter and the year-ago quarter. With capital expenditure remaining near the same level, the additional operating cash flow translated into higher free cash flow and an improved free cash flow margin.
This strengthens the company's cash position and financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased at a faster pace than revenue, leading to improved cash conversion. Capital expenditure remained stable, allowing the operating cash flow growth to flow directly into free cash flow.
Compared to the previous quarter, revenue, operating cash flow, and free cash flow were all higher, resulting in an improved free cash flow margin. Year-over-year, the company moved from a negative free cash flow margin to a positive one, with operating cash flow more than offsetting capital expenditure.
Monitor the trajectory of operating cash flow relative to revenue in upcoming quarters.