Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from the prior quarter and the year-ago quarter, driven by lower operating cash flow and higher capital expenditure. The free cash flow margin weakened sequentially and compared to the same quarter last year.
- Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow decreased both sequentially and year-over-year, while capital expenditure increased in both comparisons, resulting in a lower free cash flow and a weakened free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was higher. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower, with capital expenditure higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$774.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$899.9M
Cash generated by operations before capital spending.
CapEx
$125.6M
Capital spending and related asset purchases.
FCF margin
15.9%
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 | $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% |
| 2024-12-31 | $4.9B | $899.9M | $125.6M | $774.3M | 15.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | 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 Weakening
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while revenue was higher year-over-year. This divergence is the strongest observable driver of the free cash flow decline.
The lower operating cash flow, combined with higher capital expenditure, reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow decreased both sequentially and year-over-year, while capital expenditure increased in both comparisons, resulting in a lower free cash flow and a weakened free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was higher. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower, with capital expenditure higher.
Monitor the trajectory of operating cash flow, as it declined both sequentially and year-over-year despite higher revenue.