Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased in the quarter. Free cash flow margin improved sequentially but decreased compared to the same quarter last year.
- Operating cash flow as a proportion of revenue improved relative to the prior quarter, supporting a higher free cash flow margin despite an increase in capital expenditure. The absolute gap between operating cash flow and capital expenditure widened sequentially, reflecting stronger cash generation.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher. Relative to the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure increased, but 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
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$577.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$781.0M
Capital spending and related asset purchases.
FCF margin
10.3%
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 | $5.2B | $1.4B | $1.0B | $340.0M | 6.5% |
| 2024-03-31 | $5.2B | $1.4B | $668.0M | $699.0M | 13.5% |
| 2024-06-30 | $5.4B | $1.2B | $667.0M | $487.0M | 9.0% |
| 2024-09-30 | $5.6B | $1.4B | $781.0M | $577.0M | 10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.9% | 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 growth
Operating cash flow increased from both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This improvement occurred even as capital expenditure rose period over period.
Higher operating cash flow was the strongest observable driver of the sequential improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue improved relative to the prior quarter, supporting a higher free cash flow margin despite an increase in capital expenditure. The absolute gap between operating cash flow and capital expenditure widened sequentially, reflecting stronger cash generation.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher. Relative to the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure increased, but free cash flow and free cash flow margin were lower.
Monitor the trend in capital expenditure relative to operating cash flow, as a sustained increase may pressure free cash flow margin.