Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
T-Mobile's free cash flow margin improved substantially from the same quarter last year, driven by higher operating cash flow and lower capital expenditure. Sequentially, the margin weakened as capital expenditure increased while revenue declined.
- Revenue was stable year-over-year, but operating cash flow was higher and capital expenditure was lower, resulting in higher free cash flow and an improved margin. The company converted a larger share of revenue into free cash flow compared to the prior year.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was higher, but capital expenditure was significantly higher, leading to lower free cash flow and a lower margin. Relative to the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was lower, and both free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.1B
Cash generated by operations before capital spending.
CapEx
$2.6B
Capital spending and related asset purchases.
FCF margin
12.5%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $19.2B | $4.4B | $2.8B | $1.6B | 8.2% |
| 2023-09-30 | $19.3B | $5.3B | $2.4B | $2.9B | 14.9% |
| 2023-12-31 | $20.5B | $4.9B | $1.6B | $3.3B | 16.0% |
| 2024-03-31 | $19.6B | $5.1B | $2.6B | $2.5B | 12.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 103.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger operating cash flow
Operating cash flow increased compared to the prior year, supported by higher net income adjusted for non-cash items and a reduction in net cash outflows from working capital, as noted in the filing.
This improvement was the primary factor behind the year-over-year increase in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable year-over-year, but operating cash flow was higher and capital expenditure was lower, resulting in higher free cash flow and an improved margin. The company converted a larger share of revenue into free cash flow compared to the prior year.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was higher, but capital expenditure was significantly higher, leading to lower free cash flow and a lower margin. Relative to the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was lower, and both free cash flow and margin were higher.
Monitor the level of capital expenditure, which increased from the previous quarter and remains a key factor in free cash flow generation.