Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Operating cash flow and free cash flow improved significantly versus both the preceding quarter and the year-ago quarter, with free cash flow margin turning positive.
- Operating cash flow exceeded capital expenditure, generating positive free cash flow and a positive margin, a reversal from the negative free cash flow margin a year earlier. The conversion from revenue to free cash flow strengthened compared to both the prior quarter and the same quarter last year.
- Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, revenue was higher and all cash flow metrics improved markedly, with operating cash flow turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$549.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$1.7B
Capital spending and related asset purchases.
FCF margin
3.7%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $12.5B | $2.8B | $1.4B | $1.5B | 11.8% |
| 2024-06-30 | $15.0B | $2.9B | $1.2B | $1.7B | 11.4% |
| 2024-09-30 | $14.8B | $1.5B | $1.4B | $88.0M | 0.6% |
| 2024-12-31 | $14.7B | $2.2B | $1.7B | $549.0M | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 55.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.9B | 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 Recovery
Operating cash flow increased substantially from 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's cash conversion.
Higher operating cash flow enabled positive free cash flow despite ongoing capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, generating positive free cash flow and a positive margin, a reversal from the negative free cash flow margin a year earlier. The conversion from revenue to free cash flow strengthened compared to both the prior quarter and the same quarter last year.
Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, revenue was higher and all cash flow metrics improved markedly, with operating cash flow turning from negative to positive.
Monitor capital expenditure relative to operating cash flow, as the gap narrowed this quarter but remains a key factor in free cash flow generation.