Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all rose versus both the prior quarter and the same quarter last year, while the free cash flow margin improved relative to the preceding quarter but showed a slight decline compared to a year ago. The increase in operating cash flow was supported by higher net income, noncash depreciation and amortization from recent acquisitions, and improved working capital management, as stated in the filing.
- Revenue converted into operating cash flow at a rate that supported a free cash flow margin above a quarter ago, despite a higher level of capital expenditure. Free cash flow improved sequentially and from the same quarter last year, reflecting the combined effect of operating cash flow growth and the relative size of capital spending.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, while the free cash flow margin improved. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow increased; capital expenditure was lower, and the free cash flow margin weakened slightly.
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
$498.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$550.0M
Cash generated by operations before capital spending.
CapEx
$51.7M
Capital spending and related asset purchases.
FCF margin
28.3%
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 | $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% |
| 2024-12-31 | $1.8B | $550.0M | $51.7M | $498.3M | 28.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.7B | 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 Growth
Operating cash flow was the strongest observable driver, rising from both the prior quarter and the same quarter last year, even as capital expenditure increased. This directly contributed to the sequential and year-over-year improvement in free cash flow.
The increase in operating cash flow provided the primary lift to free cash flow, offsetting higher capital spending relative to the preceding quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue converted into operating cash flow at a rate that supported a free cash flow margin above a quarter ago, despite a higher level of capital expenditure. Free cash flow improved sequentially and from the same quarter last year, reflecting the combined effect of operating cash flow growth and the relative size of capital spending.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, while the free cash flow margin improved. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow increased; capital expenditure was lower, and the free cash flow margin weakened slightly.
Monitor the trajectory of capital expenditure, which rose sequentially but remained below the year-ago level, as its trend can influence free cash flow conversion.