Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter and the same quarter last year, while free cash flow improved substantially from the prior quarter and was slightly higher than the year-ago period. The quarter’s free cash flow margin improved compared with both prior periods.
- Operating cash flow was higher than the previous quarter but similar to the year-ago quarter. Capital expenditure increased from the prior quarter but decreased from the prior year, and free cash flow was higher than both prior periods after accounting for these investments.
- Compared with the immediately preceding quarter, free cash flow and margin improved significantly. Compared with the same quarter one year earlier, free cash flow was slightly higher and margin also improved, despite lower revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$749.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$826.5M
Cash generated by operations before capital spending.
CapEx
$77.0M
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $3.8B | $568.5M | $165.5M | $403.0M | 10.5% |
| 2024-03-31 | $3.7B | $614.6M | $49.8M | $564.8M | 15.5% |
| 2024-06-30 | $3.8B | $379.1M | $58.8M | $320.3M | 8.5% |
| 2024-09-30 | $3.7B | $826.5M | $77.0M | $749.5M | 20.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | n/a | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.9B | 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 Improvement
The quarter’s operating cash flow was substantially higher than the prior quarter, which drove the improvement in free cash flow despite a slight increase in capital expenditure. The company’s filing notes that its primary liquidity source is net cash from operations and that it expects to meet working capital and other obligations.
The higher operating cash flow was the strongest observable factor in the quarter’s free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the previous quarter but similar to the year-ago quarter. Capital expenditure increased from the prior quarter but decreased from the prior year, and free cash flow was higher than both prior periods after accounting for these investments.
Compared with the immediately preceding quarter, free cash flow and margin improved significantly. Compared with the same quarter one year earlier, free cash flow was slightly higher and margin also improved, despite lower revenue.
Monitor the level of capital expenditure relative to operating cash flow, as it increased from the prior quarter and could affect future free cash flow generation.