Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin held stable versus the same quarter last year, while operating cash flow and free cash flow both improved sharply from the prior quarter. Revenue was lower than both the preceding quarter and the year-ago quarter.
- Revenue declined from the prior quarter, yet operating cash flow rose significantly, resulting in a higher free cash flow margin. Capital expenditure increased from the prior quarter but was similar to the year-ago level.
- Compared to the prior quarter, free cash flow and operating cash flow were substantially higher, while revenue was lower. Versus the same quarter last year, free cash flow and operating cash flow were slightly lower, and revenue was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$193.7M
Capital spending and related asset purchases.
FCF margin
13.3%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $9.1B | $1.2B | $197.8M | $988.9M | 10.9% |
| 2024-03-31 | $8.7B | $1.5B | $324.7M | $1.1B | 13.1% |
| 2024-06-30 | $8.8B | $440.0M | $86.9M | $353.1M | 4.0% |
| 2024-09-30 | $8.2B | $1.3B | $193.7M | $1.1B | 13.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 112.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Operating cash flow improvement
Operating cash flow rose sharply from the prior quarter, driving a significant increase in free cash flow despite lower revenue. This was the strongest observable driver of the quarter's cash conversion.
The improvement in operating cash flow more than offset the decline in revenue and the increase in capital expenditure, leading to a higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter, yet operating cash flow rose significantly, resulting in a higher free cash flow margin. Capital expenditure increased from the prior quarter but was similar to the year-ago level.
Compared to the prior quarter, free cash flow and operating cash flow were substantially higher, while revenue was lower. Versus the same quarter last year, free cash flow and operating cash flow were slightly lower, and revenue was also lower.
Monitor the trend in capital expenditure, which increased from the prior quarter and may affect future free cash flow conversion.