Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sharply this quarter as operating cash flow declined while capital expenditure rose. The free cash flow margin contracted compared to both the prior quarter and the same quarter last year.
- Revenue was stable, but operating cash flow fell significantly, leading to a lower conversion of revenue into free cash flow. Capital expenditure increased, further reducing free cash flow and margin.
- Compared to the prior quarter, operating cash flow and free cash flow were both lower, and capital expenditure was higher. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$34.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$102.8M
Cash generated by operations before capital spending.
CapEx
$68.0M
Capital spending and related asset purchases.
FCF margin
1.1%
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 | $2.9B | $82.5M | $50.8M | $31.7M | 1.1% |
| 2024-06-30 | $2.9B | $710.9M | $55.4M | $655.5M | 22.4% |
| 2024-09-30 | $3.0B | $436.5M | $47.1M | $389.4M | 13.1% |
| 2024-12-31 | $3.1B | $102.8M | $68.0M | $34.8M | 1.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 17.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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 Decline
Operating cash flow decreased substantially from both the prior quarter and the year-ago quarter, while revenue remained relatively unchanged. This shift was the strongest observable driver of the lower free cash flow.
The decline in 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 stable, but operating cash flow fell significantly, leading to a lower conversion of revenue into free cash flow. Capital expenditure increased, further reducing free cash flow and margin.
Compared to the prior quarter, operating cash flow and free cash flow were both lower, and capital expenditure was higher. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, while capital expenditure was higher.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the weakened free cash flow this quarter.