Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year, yet free cash flow improved sequentially and year-over-year. The free cash flow margin strengthened compared with both periods, reflecting a higher proportion of operating cash flow relative to revenue.
- Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure increased from both periods. The resulting free cash flow was higher sequentially and year-over-year, and the free cash flow margin improved compared with both the prior quarter and the same quarter last year.
- Compared with the prior quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter last year, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$233.4M
Capital spending and related asset purchases.
FCF margin
15.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $7.9B | $1.4B | $233.4M | $1.2B | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 139.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | 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 Strength
Operating cash flow was higher than both the prior quarter and the same quarter last year, despite lower revenue in both comparisons. This was the strongest observable driver of the improvement in free cash flow and free cash flow margin.
Higher operating cash flow more than offset the increase in capital expenditure, resulting in improved free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure increased from both periods. The resulting free cash flow was higher sequentially and year-over-year, and the free cash flow margin improved compared with both the prior quarter and the same quarter last year.
Compared with the prior quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter last year, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter.