Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the same quarter a year ago, yet operating cash flow increased. As a result, free cash flow and free cash flow margin improved significantly compared to the prior quarter and were also higher than the year-ago period.
- Operating cash flow rose while revenue declined, indicating an improved cash conversion rate. Capital expenditure was lower than the prior quarter but higher than a year ago; free cash flow benefited from the combination of higher operating cash flow and lower capital spending relative to the previous quarter.
- Compared to the prior quarter, free cash flow and margin were substantially higher, driven by a stronger operating cash flow despite lower revenue. Versus the same quarter last year, free cash flow and margin were also higher, with operating cash flow increasing more than capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$806.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
20.1%
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 | $3.7B | $1.0B | $1.2B | -$231.0M | -6.3% |
| 2024-06-30 | $3.8B | $1.6B | $1.1B | $507.0M | 13.3% |
| 2024-09-30 | $4.2B | $1.7B | $1.3B | $416.0M | 10.0% |
| 2024-12-31 | $4.0B | $2.0B | $1.2B | $806.0M | 20.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 29.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.4B | 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 both sequentially and year-over-year despite lower revenue, reflecting improved cash generation from operations.
This was the primary factor behind the higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while revenue declined, indicating an improved cash conversion rate. Capital expenditure was lower than the prior quarter but higher than a year ago; free cash flow benefited from the combination of higher operating cash flow and lower capital spending relative to the previous quarter.
Compared to the prior quarter, free cash flow and margin were substantially higher, driven by a stronger operating cash flow despite lower revenue. Versus the same quarter last year, free cash flow and margin were also higher, with operating cash flow increasing more than capital expenditure.
Monitor the sustainability of operating cash flow improvements, particularly the impact of the CHIPS Act tax credit noted in the filing.