Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, supported by a strong swing in operating cash flow. Capital expenditure was lower than both the prior quarter and the same quarter last year.
- Revenue was slightly lower than the prior quarter and the year-ago quarter, but operating cash flow improved markedly from a negative position to a positive figure, driving free cash flow higher. The free cash flow margin turned positive, reflecting better cash conversion.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved significantly, while capital expenditure decreased. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$762.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$330.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$428.0M
Cash generated by operations before capital spending.
CapEx
$98.0M
Capital spending and related asset purchases.
FCF margin
10.2%
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 | $3.4B | $150.0M | $113.0M | $37.0M | 1.1% |
| 2024-06-30 | $3.5B | $943.0M | $134.0M | $809.0M | 22.9% |
| 2024-09-30 | $3.4B | -$269.0M | $145.0M | -$414.0M | -12.3% |
| 2024-12-31 | $3.2B | $428.0M | $98.0M | $330.0M | 10.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 202.5% | 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 swung from negative to positive, which was the primary factor behind the turnaround in free cash flow. This improvement occurred despite a slight decline in revenue.
The positive operating cash flow enabled the company to generate free cash flow after covering capital expenditure.
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 the year-ago quarter, but operating cash flow improved markedly from a negative position to a positive figure, driving free cash flow higher. The free cash flow margin turned positive, reflecting better cash conversion.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved significantly, while capital expenditure decreased. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, and capital expenditure was lower.
Monitor whether operating cash flow can sustain its positive level in the coming quarters.