Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened as operating cash flow declined more sharply than revenue. Free cash flow and margin were lower compared to both the prior quarter and the same quarter last year.
- Revenue was lower, while operating cash flow decreased substantially, resulting in a lower free cash flow despite reduced capital expenditure. The free cash flow margin contracted accordingly.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all declined. The same pattern held versus the year-ago quarter, with each metric lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$261.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$391.0M
Cash generated by operations before capital spending.
CapEx
$130.0M
Capital spending and related asset purchases.
FCF margin
8.4%
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 | $3.1B | $851.0M | $226.0M | $625.0M | 20.0% |
| 2024-06-30 | $3.1B | $761.0M | $185.0M | $576.0M | 18.4% |
| 2024-09-29 | $3.3B | $779.0M | $186.0M | $593.0M | 18.2% |
| 2024-12-31 | $3.1B | $391.0M | $130.0M | $261.0M | 8.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 52.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.1B | 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 Decline
Operating cash flow decreased significantly from both the prior quarter and the year-ago period, driving a lower free cash flow margin. Capital expenditure also fell but did not offset the drop in operating cash flow.
The reduction in operating cash flow was the strongest observable driver of the weakened cash conversion this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower, while operating cash flow decreased substantially, resulting in a lower free cash flow despite reduced capital expenditure. The free cash flow margin contracted accordingly.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all declined. The same pattern held versus the year-ago quarter, with each metric lower.
Monitor operating cash flow trends, as its decline was the primary factor behind the weakened free cash flow.