Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased compared to both the prior quarter and the same quarter last year, supported by higher revenue and operating cash flow. The free cash flow margin weakened slightly versus the prior quarter and the year-ago period.
- Revenue and operating cash flow both rose, while capital expenditure increased from the prior quarter but decreased from the year-ago quarter. The resulting free cash flow improved sequentially and year-over-year, though the free cash flow margin narrowed.
- Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure increased, and free cash flow improved, while the free cash flow margin was slightly lower. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was lower, free cash flow improved, and the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$562.0M
Capital spending and related asset purchases.
FCF margin
15.0%
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 | $4.8B | $596.0M | $512.0M | $84.0M | 1.8% |
| 2024-06-30 | $4.9B | $1.4B | $479.0M | $951.0M | 19.4% |
| 2024-09-30 | $5.0B | $1.3B | $468.0M | $783.0M | 15.6% |
| 2024-12-31 | $7.0B | $1.6B | $562.0M | $1.0B | 15.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$31.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher Revenue and Operating Cash Flow
Revenue and operating cash flow both rose compared to the prior quarter and the same quarter last year, providing the primary support for the increase in free cash flow.
The higher operating cash flow more than offset the sequential increase in capital expenditure, leading to improved free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both rose, while capital expenditure increased from the prior quarter but decreased from the year-ago quarter. The resulting free cash flow improved sequentially and year-over-year, though the free cash flow margin narrowed.
Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure increased, and free cash flow improved, while the free cash flow margin was slightly lower. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was lower, free cash flow improved, and the free cash flow margin was lower.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased sequentially while free cash flow margin declined.