Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both decreased from the prior quarter, while free cash flow margin weakened slightly. Compared to the same quarter last year, revenue was higher and free cash flow margin was slightly lower.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but stable versus the same quarter last year. Capital expenditure was higher than the prior quarter, resulting in a free cash flow margin that weakened sequentially and was slightly below the year-ago level.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, revenue was higher, operating cash flow was slightly lower, free cash flow was slightly lower, and free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$582.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$194.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$219.0M
Cash generated by operations before capital spending.
CapEx
$24.1M
Capital spending and related asset purchases.
FCF margin
20.6%
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 | $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% |
| 2024-12-31 | $945.6M | $219.0M | $24.1M | $194.9M | 20.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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 Decline
Operating cash flow decreased from the prior quarter and was slightly below the year-ago quarter, despite higher revenue year-over-year. This was the strongest observable driver of the sequential decline in free cash flow.
The lower operating cash flow directly reduced free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter but stable versus the same quarter last year. Capital expenditure was higher than the prior quarter, resulting in a free cash flow margin that weakened sequentially and was slightly below the year-ago level.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, revenue was higher, operating cash flow was slightly lower, free cash flow was slightly lower, and free cash flow margin was slightly lower.
Monitor the trend in capital expenditure, which increased from the prior quarter and was slightly higher than the year-ago quarter.