Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sharply versus the prior quarter and was slightly higher than the same quarter last year. Operating cash flow was the primary driver of the increase, while capital expenditure also rose.
- Revenue was stable compared to a year ago and higher than the prior quarter. Operating cash flow grew substantially from the preceding quarter and was slightly above the year-ago level, leading to a higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Versus the same quarter last year, revenue was stable, operating cash flow and free cash flow were slightly higher, capital expenditure was similar, and free cash flow margin improved modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.6B
Cash generated by operations before capital spending.
CapEx
$816.0M
Capital spending and related asset purchases.
FCF margin
16.5%
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 | $10.1B | -$706.0M | $270.0M | -$976.0M | -9.6% |
| 2024-06-30 | $10.2B | $1.4B | $320.0M | $1.1B | 10.8% |
| 2024-09-30 | $10.0B | $1.1B | $361.0M | $730.0M | 7.3% |
| 2024-12-31 | $10.7B | $2.6B | $816.0M | $1.8B | 16.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 139.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.9B | 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 strength
Operating cash flow was the strongest observable driver, rising significantly from the prior quarter and modestly from a year ago. This directly supported the increase in free cash flow and margin.
Higher operating cash flow was the primary factor behind the improved free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to a year ago and higher than the prior quarter. Operating cash flow grew substantially from the preceding quarter and was slightly above the year-ago level, leading to a higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Versus the same quarter last year, revenue was stable, operating cash flow and free cash flow were slightly higher, capital expenditure was similar, and free cash flow margin improved modestly.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.