Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, free cash flow, and margin all improved compared to the prior quarter and the same quarter last year. Capital expenditure increased, reflecting higher investment activity.
- Free cash flow margin expanded as operating cash flow grew faster than revenue, while capital expenditure also rose. The combination of higher operating cash flow and controlled capital spending supported stronger free cash flow generation.
- All key metrics — revenue, operating cash flow, free cash flow, and margin — were higher in the current quarter compared to both the immediately preceding quarter and the same quarter one year earlier. Capital expenditure was also higher in both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$266.0M
Capital spending and related asset purchases.
FCF margin
25.9%
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 | $5.2B | $204.0M | $167.0M | $37.0M | 0.7% |
| 2024-06-30 | $5.4B | $633.0M | $152.0M | $481.0M | 8.9% |
| 2024-09-30 | $5.5B | $1.5B | $170.0M | $1.3B | 23.7% |
| 2024-12-31 | $6.4B | $1.9B | $266.0M | $1.7B | 25.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 304.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Growth
Operating cash flow rose substantially compared to both the prior quarter and the year-ago quarter, outpacing the growth in revenue. This was the primary observable factor behind the improvement in free cash flow.
Higher operating cash flow directly boosted free cash flow and margin, reinforcing the company's cash generation capacity.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow margin expanded as operating cash flow grew faster than revenue, while capital expenditure also rose. The combination of higher operating cash flow and controlled capital spending supported stronger free cash flow generation.
All key metrics — revenue, operating cash flow, free cash flow, and margin — were higher in the current quarter compared to both the immediately preceding quarter and the same quarter one year earlier. Capital expenditure was also higher in both comparisons.
Monitor the trajectory of capital expenditure given its increase in the current quarter relative to both prior periods.