Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin weakened versus both periods, driven by lower operating cash flow.
- Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure decreased relative to both periods. The resulting free cash flow and free cash flow margin declined sequentially and year-over-year.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$655.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$843.0M
Capital spending and related asset purchases.
FCF margin
2.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $24.9B | $2.4B | $2.0B | $362.0M | 1.5% |
| 2024-03-31 | $21.7B | $3.3B | $1.0B | $2.3B | 10.5% |
| 2024-06-30 | $21.8B | $2.0B | $933.0M | $1.1B | 4.9% |
| 2024-09-30 | $22.2B | $1.5B | $843.0M | $655.0M | 2.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 42.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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 Decline
Operating cash flow was the strongest observable driver of the free cash flow decline, as it decreased relative to both the prior quarter and the year-ago quarter. Revenue increased, but this did not translate into higher operating cash flow.
The lower operating cash flow directly reduced free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure decreased relative to both periods. The resulting free cash flow and free cash flow margin declined sequentially and year-over-year.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor the trajectory of operating cash flow, as it declined sequentially and year-over-year despite higher revenue.