Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin weakened versus both periods, as capital expenditure rose while operating cash flow showed mixed trends.
- Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure increased sequentially and year-over-year, resulting in free cash flow that was lower than both the prior quarter and the same quarter last year, with a narrower free cash flow margin.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$549.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$453.7M
Capital spending and related asset purchases.
FCF margin
13.5%
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 | $3.8B | $898.7M | $547.8M | $350.9M | 9.2% |
| 2024-03-31 | $3.9B | $811.0M | $515.0M | $296.0M | 7.7% |
| 2024-06-30 | $4.0B | $1.1B | $403.4M | $696.6M | 17.2% |
| 2024-09-30 | $4.1B | $1.0B | $453.7M | $549.3M | 13.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.1% | 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 compared to both the prior quarter and the same quarter last year, outpacing the growth in operating cash flow. This was the strongest observable factor behind the decline in free cash flow and margin.
Higher capital expenditure reduced free cash flow despite higher revenue and operating cash flow year-over-year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure increased sequentially and year-over-year, resulting in free cash flow that was lower than both the prior quarter and the same quarter last year, with a narrower free cash flow margin.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow and margin were lower.
Monitor the trend in capital expenditure relative to operating cash flow, as higher spending has reduced free cash flow conversion.