Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin also strengthened over both comparison periods.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased significantly versus both periods, while capital expenditure decreased compared to both, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, revenue was slightly lower, but operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter last year, revenue, 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
$10.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.0B
Cash generated by operations before capital spending.
CapEx
$278.0M
Capital spending and related asset purchases.
FCF margin
38.4%
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 | $8.8B | $241.0M | $417.0M | -$176.0M | -2.0% |
| 2024-06-30 | $9.5B | $4.6B | $370.0M | $4.3B | 45.0% |
| 2024-09-30 | $9.9B | $3.3B | $379.0M | $3.0B | 29.9% |
| 2024-12-31 | $9.7B | $4.0B | $278.0M | $3.7B | 38.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -643.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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, while capital expenditure was lower than both periods. This combination drove the improvement in free cash flow and margin.
The higher operating cash flow was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased significantly versus both periods, while capital expenditure decreased compared to both, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, revenue was slightly lower, but operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.