Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased from the prior quarter and the year-ago quarter. Free cash flow improved sequentially but was slightly lower than the same quarter last year, while free cash flow margin strengthened compared to the prior quarter but weakened versus the year-ago period.
- Revenue conversion into operating cash flow was strong, with operating cash flow exceeding capital expenditure by a wide margin, resulting in positive free cash flow. The free cash flow margin remained above half of revenue, indicating efficient cash generation from sales.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all moved higher. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure increased, free cash flow was slightly lower, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$867.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$217.9M
Capital spending and related asset purchases.
FCF margin
54.8%
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 | $1.4B | $773.1M | $163.0M | $610.1M | 42.3% |
| 2024-06-30 | $1.5B | $1.1B | $188.4M | $874.8M | 60.0% |
| 2024-09-30 | $1.5B | $892.9M | $186.4M | $706.5M | 47.7% |
| 2024-12-31 | $1.6B | $1.1B | $217.9M | $867.7M | 54.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 112.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow
Operating cash flow rose sequentially and year over year, providing the primary support for free cash flow generation. The increase in operating cash flow outpaced the rise in capital expenditure, allowing free cash flow to improve quarter over quarter.
Higher operating cash flow underpinned sequential free cash flow growth despite moderately higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into operating cash flow was strong, with operating cash flow exceeding capital expenditure by a wide margin, resulting in positive free cash flow. The free cash flow margin remained above half of revenue, indicating efficient cash generation from sales.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all moved higher. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure increased, free cash flow was slightly lower, and free cash flow margin weakened.
Capital expenditure increased sequentially and year over year; the pace of future investment spending is worth monitoring.