Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the preceding quarter but similar to the same period a year earlier. Free cash flow turned positive from negative compared to the year-ago quarter, though it decreased from the immediate prior period.
- Cash conversion improved year over year as operating cash flow rose and capital expenditure declined, yielding a positive free cash flow margin. Sequentially, the conversion rate weakened due to lower operating cash flow and higher capital spending.
- Compared to the immediately preceding quarter, free cash flow was lower, driven by reduced operating cash flow and increased capital expenditure. Versus the same three-month period one year earlier, free cash flow improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$276.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$951.0M
Cash generated by operations before capital spending.
CapEx
$675.0M
Capital spending and related asset purchases.
FCF margin
9.1%
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 | $3.0B | $839.0M | $557.0M | $282.0M | 9.4% |
| 2024-06-30 | $3.0B | $1.0B | $568.0M | $468.0M | 15.4% |
| 2024-09-30 | $3.1B | $1.2B | $581.0M | $645.0M | 21.1% |
| 2024-12-31 | $3.0B | $951.0M | $675.0M | $276.0M | 9.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 37.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.3% | 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.
Improved Operating Cash Flow
Operating cash flow was higher than the same period last year, while capital expenditure was lower, together driving a return to positive free cash flow.
This improvement reversed the negative free cash flow from a year earlier, strengthening the company's cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion improved year over year as operating cash flow rose and capital expenditure declined, yielding a positive free cash flow margin. Sequentially, the conversion rate weakened due to lower operating cash flow and higher capital spending.
Compared to the immediately preceding quarter, free cash flow was lower, driven by reduced operating cash flow and increased capital expenditure. Versus the same three-month period one year earlier, free cash flow improved from negative to positive.
Monitor the trend in operating cash flow, which declined from the prior quarter.