Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin were lower than the prior quarter but stable compared to the same quarter last year. Operating cash flow decreased from the prior quarter while capital expenditure increased, resulting in a lower conversion rate.
- Revenue was slightly lower than the prior quarter, and operating cash flow decreased more than proportionally, while capital expenditure rose, leading to a lower free cash flow and margin. Compared to the same quarter last year, revenue was higher, operating cash flow was slightly higher, and capital expenditure was higher, resulting in a free cash flow that was slightly lower and a margin that was slightly lower.
- Compared to the prior quarter, free cash flow and margin were lower, driven by lower operating cash flow and higher capital expenditure. Compared to the same quarter last year, free cash flow was slightly lower and margin was slightly lower, with revenue higher but capital expenditure also 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
$689.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$905.0M
Cash generated by operations before capital spending.
CapEx
$216.0M
Capital spending and related asset purchases.
FCF margin
29.7%
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 | $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% |
| 2024-12-31 | $2.3B | $905.0M | $216.0M | $689.0M | 29.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 118.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the same quarter last year, which was the strongest observable factor reducing free cash flow in the current quarter.
Higher capital expenditure directly lowered free cash flow and margin despite relatively stable revenue and operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, and operating cash flow decreased more than proportionally, while capital expenditure rose, leading to a lower free cash flow and margin. Compared to the same quarter last year, revenue was higher, operating cash flow was slightly higher, and capital expenditure was higher, resulting in a free cash flow that was slightly lower and a margin that was slightly lower.
Compared to the prior quarter, free cash flow and margin were lower, driven by lower operating cash flow and higher capital expenditure. Compared to the same quarter last year, free cash flow was slightly lower and margin was slightly lower, with revenue higher but capital expenditure also higher.
Monitor the level of capital expenditure relative to operating cash flow, as higher spending in the current quarter reduced free cash flow conversion.