Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened in the current quarter compared to both the prior quarter and the same quarter last year, driven by lower operating cash flow and higher capital expenditure. The free cash flow margin declined from the prior quarter and was slightly below the year-ago level.
- Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow decreased more sharply, resulting in a lower free cash flow margin. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter, contributing to the weakened cash conversion.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased, while capital expenditure increased. Versus the same quarter last year, revenue and free cash flow were lower, operating cash flow was lower, capital expenditure was lower, and free cash flow margin was slightly lower.
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
$342.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$482.7M
Cash generated by operations before capital spending.
CapEx
$140.4M
Capital spending and related asset purchases.
FCF margin
9.7%
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 | $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% |
| 2024-12-31 | $3.5B | $482.7M | $140.4M | $342.3M | 9.7% |
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 | 4.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.3B | 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 decreased significantly from both the prior quarter and the year-ago quarter, while revenue also declined. This was the strongest observable driver of the lower free cash flow.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow decreased more sharply, resulting in a lower free cash flow margin. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter, contributing to the weakened cash conversion.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased, while capital expenditure increased. Versus the same quarter last year, revenue and free cash flow were lower, operating cash flow was lower, capital expenditure was lower, and free cash flow margin was slightly lower.
Monitor the trend in operating cash flow, as its decline was the primary factor behind the weakened free cash flow this quarter.