Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened compared to both the prior quarter and the same quarter last year, despite revenue being slightly higher than a year ago. Operating cash flow declined, while capital expenditure increased relative to the year-ago period.
- Revenue was stable, but operating cash flow was lower than both the prior quarter and the year-ago quarter, resulting in a lower free cash flow margin. Capital expenditure was higher than a year ago, further reducing free cash flow conversion.
- Compared to the prior quarter, revenue was slightly lower, operating cash flow was lower, and free cash flow and margin were both lower. Versus the same quarter last year, revenue was slightly higher, but operating cash flow, free cash flow, and margin were all lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$839.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$235.3M
Capital spending and related asset purchases.
FCF margin
13.6%
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 | $5.3B | $918.6M | $319.5M | $599.1M | 11.4% |
| 2024-03-31 | $5.4B | -$58.9M | $283.8M | -$342.7M | -6.4% |
| 2024-06-30 | $6.3B | $1.2B | $250.9M | $952.0M | 15.2% |
| 2024-09-30 | $6.2B | $1.1B | $235.3M | $839.4M | 13.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower Operating Cash Flow
Operating cash flow was lower than both the prior quarter and the year-ago quarter, which was the primary observable factor behind the weakened free cash flow and margin.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow was lower than both the prior quarter and the year-ago quarter, resulting in a lower free cash flow margin. Capital expenditure was higher than a year ago, further reducing free cash flow conversion.
Compared to the prior quarter, revenue was slightly lower, operating cash flow was lower, and free cash flow and margin were both lower. Versus the same quarter last year, revenue was slightly higher, but operating cash flow, free cash flow, and margin were all lower, while capital expenditure was higher.
Monitor the trend in capital expenditure, which was higher than a year ago and contributed to the lower free cash flow.