Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from the prior quarter, driven by higher operating cash flow. Compared to the same quarter last year, free cash flow and margin were slightly higher.
- Revenue increased while operating cash flow rose substantially, leading to a higher free cash flow margin. Capital expenditure was modestly higher than both the prior quarter and the year-ago quarter, but the increase in operating cash flow more than offset this.
- Compared to the prior quarter, free cash flow and margin both improved, with operating cash flow rising and capital expenditure increasing only slightly. Versus the same quarter last year, free cash flow and margin were slightly higher, while revenue was higher and operating cash flow was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$126.9M
Capital spending and related asset purchases.
FCF margin
22.3%
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 | $8.8B | $1.7B | $81.6M | $1.6B | 17.9% |
| 2024-03-31 | $9.4B | $2.2B | $75.7M | $2.1B | 22.8% |
| 2024-06-30 | $9.6B | $1.3B | $78.3M | $1.2B | 12.7% |
| 2024-09-30 | $9.8B | $2.3B | $126.9M | $2.2B | 22.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 substantially from the prior quarter and was higher than the year-ago quarter, driving the improvement in free cash flow. This was the strongest observable factor in the quarter's cash conversion.
Higher operating cash flow directly boosted free cash flow and margin, even with a modest increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose substantially, leading to a higher free cash flow margin. Capital expenditure was modestly higher than both the prior quarter and the year-ago quarter, but the increase in operating cash flow more than offset this.
Compared to the prior quarter, free cash flow and margin both improved, with operating cash flow rising and capital expenditure increasing only slightly. Versus the same quarter last year, free cash flow and margin were slightly higher, while revenue was higher and operating cash flow was also higher.
Monitor the trend in capital expenditure relative to operating cash flow, as a sustained increase in capex could pressure free cash flow margins.