Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow declined while capital expenditures increased, resulting in lower free cash flow and a weakened free cash flow margin compared to the prior quarter. Versus the same quarter last year, operating cash flow improved, capital expenditures were higher, and free cash flow rose with an improved margin.
- Revenue fell from the previous quarter, and operating cash flow decreased more sharply, leading to a lower free cash flow margin. Compared to the same quarter a year earlier, revenue was higher and operating cash flow improved, which supported a better free cash flow margin despite higher capital expenditures.
- Relative to the prior quarter, free cash flow and free cash flow margin both weakened, driven by lower operating cash flow and higher capital expenditure. Compared to the same quarter last year, free cash flow and its margin improved on stronger operating cash flow despite increased capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$334.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$624.5M
Cash generated by operations before capital spending.
CapEx
$290.5M
Capital spending and related asset purchases.
FCF margin
8.2%
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 | $4.0B | $704.2M | $249.2M | $455.0M | 11.4% |
| 2024-06-30 | $4.3B | $948.9M | $225.4M | $723.5M | 16.9% |
| 2024-09-30 | $4.4B | $772.0M | $258.3M | $513.7M | 11.8% |
| 2024-12-31 | $4.1B | $624.5M | $290.5M | $334.0M | 8.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 60.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.1% | 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.
Capital Expenditure Increase
Capital expenditure rose sequentially and year-over-year, outpacing the change in operating cash flow. This was the strongest observable factor weighing on free cash flow conversion in the current quarter.
Higher capital expenditure reduced the proportion of operating cash flow available as free cash flow compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue fell from the previous quarter, and operating cash flow decreased more sharply, leading to a lower free cash flow margin. Compared to the same quarter a year earlier, revenue was higher and operating cash flow improved, which supported a better free cash flow margin despite higher capital expenditures.
Relative to the prior quarter, free cash flow and free cash flow margin both weakened, driven by lower operating cash flow and higher capital expenditure. Compared to the same quarter last year, free cash flow and its margin improved on stronger operating cash flow despite increased capital spending.
Monitor whether capital expenditure remains elevated relative to operating cash flow, as the current ratio of capex to operating cash flow is higher than both the prior quarter and the year-ago quarter.