Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply as operating cash flow rose while capital expenditure increased moderately, yielding positive free cash flow and a higher margin. The current quarter's free cash flow margin strengthened compared to both the prior quarter and the same quarter one year earlier.
- Revenue was slightly lower than the prior quarter, but operating cash flow increased substantially, driving free cash flow from negative to positive. Capital expenditure was higher than both comparison periods, yet the free cash flow margin improved markedly.
- Compared to the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, revenue was slightly higher, and operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$766.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$952.0M
Cash generated by operations before capital spending.
CapEx
$186.0M
Capital spending and related asset purchases.
FCF margin
11.3%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $7.4B | $267.0M | $69.0M | $198.0M | 2.7% |
| 2024-06-30 | $6.5B | $1.1B | $103.0M | $953.0M | 14.7% |
| 2024-09-30 | $7.1B | $31.0M | $114.0M | -$83.0M | -1.2% |
| 2024-12-31 | $6.8B | $952.0M | $186.0M | $766.0M | 11.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.9B | 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 Surge
Operating cash flow was substantially higher than both the prior quarter and the same quarter one year earlier, despite revenue being only slightly changed. This was the strongest observable driver of the improved free cash flow and margin.
The increase in operating cash flow more than offset the higher capital expenditure, resulting in a positive free cash flow and a strengthened margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, but operating cash flow increased substantially, driving free cash flow from negative to positive. Capital expenditure was higher than both comparison periods, yet the free cash flow margin improved markedly.
Compared to the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, revenue was slightly higher, and operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor whether the elevated capital expenditure level persists in future quarters, as it was higher than both the prior quarter and the year-ago period.