Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to both the prior quarter and the same quarter last year, driven by a notable increase in operating cash flow. Revenue was lower than the prior quarter but higher than a year ago, while capital expenditure rose from both periods.
- Operating cash flow increased substantially from both the preceding quarter and the year-ago quarter, while capital expenditure also rose, resulting in a higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, revenue was lower but free cash flow and margin were higher. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$717.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$628.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$684.8M
Cash generated by operations before capital spending.
CapEx
$56.6M
Capital spending and related asset purchases.
FCF margin
10.5%
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 | $5.8B | -$797.9M | $51.7M | -$849.6M | -14.7% |
| 2024-03-31 | $6.0B | $489.4M | $32.0M | $457.4M | 7.7% |
| 2024-06-30 | $6.2B | $519.4M | $38.4M | $481.0M | 7.8% |
| 2024-09-30 | $6.0B | $684.8M | $56.6M | $628.2M | 10.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 221.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.2B | 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 rose significantly from both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow despite a slight revenue decline from the prior quarter.
The higher operating cash flow drove free cash flow and margin to their highest levels among the three quarters presented.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially from both the preceding quarter and the year-ago quarter, while capital expenditure also rose, resulting in a higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, revenue was lower but free cash flow and margin were higher. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all higher.
Monitor capital expenditure trends, as it increased from both the prior quarter and the year-ago quarter, which could affect future free cash flow if operating cash flow does not keep pace.