Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by a substantial increase in operating cash flow. Compared to the same quarter last year, free cash flow was slightly higher despite a lower margin.
- Revenue rose while operating cash flow increased significantly, leading to a higher free cash flow and an improved free cash flow margin relative to the prior quarter. Capital expenditure was moderately higher, but the conversion from revenue to free cash flow strengthened.
- Compared to the prior quarter, free cash flow and margin were both substantially higher. Versus the same quarter one year earlier, free cash flow was slightly higher while the margin was lower, as operating cash flow was stable and capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$253.0M
Capital spending and related asset purchases.
FCF margin
46.7%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $2.6B | $1.3B | $135.0M | $1.2B | 46.3% |
| 2024-06-30 | $2.6B | $620.0M | $262.0M | $358.0M | 13.6% |
| 2024-09-30 | $2.8B | $671.0M | $202.0M | $469.0M | 16.8% |
| 2024-12-31 | $3.0B | $1.6B | $253.0M | $1.4B | 46.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 359.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.6% | 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 Surge
Operating cash flow rose substantially from the prior quarter, far outpacing the increase in revenue. This was the strongest observable driver of the improvement in free cash flow.
The surge in operating cash flow directly lifted free cash flow and margin to levels well above the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow increased significantly, leading to a higher free cash flow and an improved free cash flow margin relative to the prior quarter. Capital expenditure was moderately higher, but the conversion from revenue to free cash flow strengthened.
Compared to the prior quarter, free cash flow and margin were both substantially higher. Versus the same quarter one year earlier, free cash flow was slightly higher while the margin was lower, as operating cash flow was stable and capital expenditure was slightly lower.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.