Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by higher operating cash flow and lower capital expenditure. Compared to the same quarter last year, free cash flow was lower despite a slight revenue increase, as operating cash flow declined.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow rose substantially from the prior quarter, though it remained below the year-ago level. Capital expenditure decreased both sequentially and year-over-year, resulting in a free cash flow margin that improved from the prior quarter but weakened compared to the same quarter last year.
- Compared to the prior quarter, free cash flow and margin improved significantly as operating cash flow increased and capital expenditure declined. Versus the same quarter a year ago, free cash flow and margin were lower, primarily because operating cash flow was lower despite a modest revenue gain.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$373.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$233.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$263.7M
Cash generated by operations before capital spending.
CapEx
$29.8M
Capital spending and related asset purchases.
FCF margin
23.9%
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 | $956.7M | $46.9M | $33.4M | $13.5M | 1.4% |
| 2024-03-31 | $997.4M | $28.7M | $9.4M | $19.3M | 1.9% |
| 2024-06-30 | $1.0B | $159.8M | $53.5M | $106.4M | 10.3% |
| 2024-09-30 | $977.9M | $263.7M | $29.8M | $233.9M | 23.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 201.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | 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 Recovery
Operating cash flow increased substantially from the prior quarter, driving the improvement in free cash flow. This was the strongest observable factor in the quarter's cash conversion performance.
The sequential rise in operating cash flow was the primary reason free cash flow and margin improved from the prior quarter.
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 but higher than a year ago. Operating cash flow rose substantially from the prior quarter, though it remained below the year-ago level. Capital expenditure decreased both sequentially and year-over-year, resulting in a free cash flow margin that improved from the prior quarter but weakened compared to the same quarter last year.
Compared to the prior quarter, free cash flow and margin improved significantly as operating cash flow increased and capital expenditure declined. Versus the same quarter a year ago, free cash flow and margin were lower, primarily because operating cash flow was lower despite a modest revenue gain.
Monitor whether operating cash flow can sustain its sequential improvement, as it remains below the year-ago level.