Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially, while free cash flow improved sharply from the prior quarter but was slightly lower than the same quarter last year. The cash conversion margin strengthened sequentially, though it remained marginally below the year-ago level.
- Operating cash flow as a share of revenue increased both sequentially and relative to the year-ago quarter. Capital expenditure remained modest, allowing free cash flow to rise from the prior quarter, though free cash flow margin narrowed slightly compared to the same quarter last year.
- Compared to the immediately preceding quarter, operating cash flow improved, free cash flow increased, and free cash flow margin rose. Versus the same quarter one year earlier, revenue was higher, operating cash flow was lower, free cash flow was lower, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$460.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$487.2M
Cash generated by operations before capital spending.
CapEx
$26.3M
Capital spending and related asset purchases.
FCF margin
27.0%
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 | $1.7B | $540.7M | $59.7M | $480.9M | 27.8% |
| 2024-03-31 | $1.7B | $410.2M | $27.7M | $382.6M | 22.0% |
| 2024-06-30 | $1.7B | $381.4M | $21.4M | $360.0M | 20.8% |
| 2024-09-30 | $1.7B | $487.2M | $26.3M | $460.9M | 27.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | 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 Momentum
The sequential increase in operating cash flow was the strongest observable driver, rising from the prior quarter while capital expenditure remained stable. This lifted free cash flow despite revenue being unchanged.
The improvement in operating cash flow directly supported a stronger free cash flow margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue increased both sequentially and relative to the year-ago quarter. Capital expenditure remained modest, allowing free cash flow to rise from the prior quarter, though free cash flow margin narrowed slightly compared to the same quarter last year.
Compared to the immediately preceding quarter, operating cash flow improved, free cash flow increased, and free cash flow margin rose. Versus the same quarter one year earlier, revenue was higher, operating cash flow was lower, free cash flow was lower, and free cash flow margin weakened.
Monitor whether the operating cash flow can sustain the elevated level seen in the current quarter relative to the prior quarter.