Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved compared to a year ago but weakened sequentially.
- Operating cash flow was stable relative to the prior quarter and higher year over year. Capital expenditure increased sequentially but decreased from the year-ago period, resulting in free cash flow that was lower than the prior quarter but higher than the same quarter last year.
- Compared to the immediately preceding quarter, revenue and free cash flow were lower, while capital expenditure was higher. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$524.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$498.0M
Capital spending and related asset purchases.
FCF margin
13.0%
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 | $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% |
| 2024-12-31 | $4.0B | $1.0B | $498.0M | $524.0M | 13.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow growth
Free cash flow was higher than the same quarter last year, supported by higher operating cash flow and lower capital expenditure. This drove an improvement in free cash flow margin from the year-ago level.
The year-over-year improvement in free cash flow margin was the strongest observable driver this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was stable relative to the prior quarter and higher year over year. Capital expenditure increased sequentially but decreased from the year-ago period, resulting in free cash flow that was lower than the prior quarter but higher than the same quarter last year.
Compared to the immediately preceding quarter, revenue and free cash flow were lower, while capital expenditure was higher. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure was lower.
Monitor the trend in capital expenditure, which increased sequentially and could pressure free cash flow if revenue does not expand.