Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin declined from both the prior quarter and the same quarter last year, driven by lower operating cash flow. Revenue also decreased compared to both periods, while capital expenditure was mixed.
- Operating cash flow as a proportion of revenue weakened versus both the prior quarter and the year-ago quarter, resulting in a lower free cash flow margin despite a slight reduction in capital expenditure relative to the prior quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were also lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$350.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$521.2M
Cash generated by operations before capital spending.
CapEx
$170.8M
Capital spending and related asset purchases.
FCF margin
9.7%
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 | $3.3B | $474.5M | $177.4M | $297.1M | 8.9% |
| 2024-03-31 | $3.0B | $25.4M | $214.7M | -$189.3M | -6.2% |
| 2024-06-30 | $3.8B | $869.2M | $177.5M | $691.7M | 18.0% |
| 2024-09-30 | $3.6B | $521.2M | $170.8M | $350.4M | 9.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 175.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.2B | 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 Decline
Operating cash flow decreased compared to both the prior quarter and the year-ago quarter, while revenue also fell. This combination drove the reduction in free cash flow and margin.
The lower operating cash flow was the strongest observable driver of the weakened cash conversion in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue weakened versus both the prior quarter and the year-ago quarter, resulting in a lower free cash flow margin despite a slight reduction in capital expenditure relative to the prior quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were also lower, while capital expenditure was higher.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the weakened free cash flow generation.