Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow and margin improved compared to both the prior quarter and the year-ago quarter, supported by higher operating cash flow. Revenue was stable sequentially but higher year over year.
- Revenue was stable sequentially and higher year over year. Operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin, despite a rise in capital expenditure.
- Compared to the prior quarter, revenue was stable while operating cash flow, free cash flow, and margin were higher; capital expenditure was also higher. Versus the year-ago quarter, all metrics were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$784.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$951.0M
Cash generated by operations before capital spending.
CapEx
$167.0M
Capital spending and related asset purchases.
FCF margin
32.8%
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 | $2.2B | $897.0M | $198.0M | $699.0M | 31.6% |
| 2024-03-31 | $2.2B | $595.0M | $140.0M | $455.0M | 20.8% |
| 2024-06-30 | $2.4B | $502.0M | $132.0M | $370.0M | 15.7% |
| 2024-09-30 | $2.4B | $951.0M | $167.0M | $784.0M | 32.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.0% | 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 Improvement
Operating cash flow increased substantially compared to both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow.
The stronger operating cash flow was the key driver of the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year over year. Operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin, despite a rise in capital expenditure.
Compared to the prior quarter, revenue was stable while operating cash flow, free cash flow, and margin were higher; capital expenditure was also higher. Versus the year-ago quarter, all metrics were higher.
Monitor capital expenditure, which increased in the current quarter.