Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin expanded significantly compared with both periods.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased more than proportionally, leading to a higher free cash flow after a modestly higher capital expenditure. The resulting free cash flow margin was higher than both comparison periods.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow were both higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing stronger improvement than revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$88.3M
Capital spending and related asset purchases.
FCF margin
22.3%
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 | $4.4B | $934.8M | $83.5M | $851.3M | 19.2% |
| 2024-03-31 | $4.2B | $247.2M | $83.8M | $163.4M | 3.9% |
| 2024-06-30 | $5.3B | $695.9M | $72.9M | $623.0M | 11.7% |
| 2024-09-30 | $5.4B | $1.3B | $88.3M | $1.2B | 22.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 157.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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.
Operating Cash Flow Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, driving the improvement in free cash flow and margin. This was the strongest observable factor in the quarter.
Higher operating cash flow directly lifted free cash flow and margin without requiring a proportional increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased more than proportionally, leading to a higher free cash flow after a modestly higher capital expenditure. The resulting free cash flow margin was higher than both comparison periods.
Compared with the immediately preceding quarter, operating cash flow and free cash flow were both higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing stronger improvement than revenue.
Monitor whether the elevated operating cash flow level can be sustained in the next quarter.