Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and operating cash flow improved significantly compared with both the prior quarter and the same quarter last year, driven by higher revenue and a stable capital expenditure level. The free cash flow margin strengthened as a result.
- Revenue increased while capital expenditure was nearly unchanged from the prior quarter, allowing operating cash flow to rise sharply and convert into a higher free cash flow amount. The free cash flow margin widened compared with both the prior and year-ago quarters.
- Compared with the immediately preceding quarter, revenue was higher, operating cash flow improved substantially, and free cash flow rose markedly, leading to a stronger margin. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$412.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$658.4M
Cash generated by operations before capital spending.
CapEx
$245.9M
Capital spending and related asset purchases.
FCF margin
10.0%
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 | $3.8B | $396.4M | $208.5M | $187.9M | 4.9% |
| 2024-06-30 | $3.9B | $679.3M | $241.4M | $437.9M | 11.2% |
| 2024-09-30 | $4.0B | $333.0M | $247.9M | $85.0M | 2.1% |
| 2024-12-31 | $4.1B | $658.4M | $245.9M | $412.5M | 10.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | 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 rose sharply from both the prior quarter and the year-ago quarter, outpacing the increase in revenue and driving a higher free cash flow margin.
The ability to convert a larger share of revenue into free cash flow improved, as reflected in the expanded free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while capital expenditure was nearly unchanged from the prior quarter, allowing operating cash flow to rise sharply and convert into a higher free cash flow amount. The free cash flow margin widened compared with both the prior and year-ago quarters.
Compared with the immediately preceding quarter, revenue was higher, operating cash flow improved substantially, and free cash flow rose markedly, leading to a stronger margin. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing notable improvement.
The stability of capital expenditure relative to revenue growth is a key factor to monitor for sustaining cash conversion efficiency.