Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow relative to revenue. Capital expenditure was lower sequentially but slightly higher year-over-year.
- Revenue was lower than the prior quarter, yet operating cash flow remained substantial, resulting in a higher free cash flow margin. The conversion from revenue to free cash flow strengthened versus both comparison periods.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, but free cash flow margin improved as capital expenditure decreased. Versus the same quarter one year earlier, all metrics were higher, with free cash flow margin showing the largest relative improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$923.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$430.0M
Capital spending and related asset purchases.
FCF margin
25.2%
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 | $3.2B | $312.0M | $465.0M | -$153.0M | -4.8% |
| 2024-06-30 | $3.6B | $1.2B | $498.0M | $698.0M | 19.4% |
| 2024-09-30 | $4.3B | $1.7B | $685.0M | $1.0B | 23.4% |
| 2024-12-31 | $3.7B | $1.4B | $430.0M | $923.0M | 25.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 209.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.1B | 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 was higher year-over-year despite a smaller increase in revenue, contributing to a materially higher free cash flow margin. The sequential decline in capital expenditure further supported free cash flow.
The combination of sustained operating cash flow and lower capital spending drove free cash flow margin to its highest level among the three reported quarters.
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, yet operating cash flow remained substantial, resulting in a higher free cash flow margin. The conversion from revenue to free cash flow strengthened versus both comparison periods.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, but free cash flow margin improved as capital expenditure decreased. Versus the same quarter one year earlier, all metrics were higher, with free cash flow margin showing the largest relative improvement.
Monitor the trend in capital expenditure, which decreased sequentially but remained above the year-ago level.