Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin strengthened to a level well above the comparable periods.
- Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow increased substantially relative to both periods, while capital expenditure remained similar, resulting in a higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, with operating cash flow higher and revenue essentially stable. Versus the same quarter one year earlier, all metrics were higher: revenue, operating cash flow, free cash flow, and free cash flow margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$584.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$212.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$231.9M
Cash generated by operations before capital spending.
CapEx
$19.9M
Capital spending and related asset purchases.
FCF margin
21.9%
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 | $897.4M | $219.5M | $23.5M | $196.0M | 21.8% |
| 2024-03-31 | $893.9M | $51.1M | $27.2M | $23.9M | 2.7% |
| 2024-06-30 | $965.6M | $173.0M | $20.9M | $152.1M | 15.8% |
| 2024-09-30 | $967.1M | $231.9M | $19.9M | $212.0M | 21.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 Strength
Operating cash flow was the strongest observable driver, increasing significantly from both the prior quarter and the year-ago quarter, while revenue showed only modest change. This directly lifted free cash flow and margin.
The improvement in operating cash flow was the primary factor behind the higher free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow increased substantially relative to both periods, while capital expenditure remained similar, resulting in a higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, with operating cash flow higher and revenue essentially stable. Versus the same quarter one year earlier, all metrics were higher: revenue, operating cash flow, free cash flow, and free cash flow margin all improved.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.