Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter a year ago but lower than the previous quarter. Free cash flow margin improved on a year-over-year basis while weakening sequentially.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the same quarter last year but lower than the previous quarter.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, while capital expenditure was higher, leading to a lower free cash flow and margin. Versus the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin improved.
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
$634.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$934.5M
Cash generated by operations before capital spending.
CapEx
$300.0M
Capital spending and related asset purchases.
FCF margin
12.0%
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 | $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% |
| 2024-12-31 | $5.3B | $934.5M | $300.0M | $634.5M | 12.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 132.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | 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.
Year-over-Year Free Cash Flow Margin Improvement
Free cash flow margin increased compared to the same quarter last year, supported by a higher operating cash flow and a lower capital expenditure with revenue unchanged.
This improvement in free cash flow generation provides a stronger cash conversion efficiency relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the same quarter last year but lower than the previous quarter.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, while capital expenditure was higher, leading to a lower free cash flow and margin. Versus the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin improved.
The trend in capital expenditure relative to operating cash flow, as the ratio increased from the prior quarter.