Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and operating cash flow were significantly lower than both the prior quarter and the same quarter last year, while revenue remained stable. The free cash flow margin weakened notably compared to both periods.
- Revenue was unchanged from the prior quarter, but operating cash flow dropped substantially, resulting in a much lower free cash flow and a weakened free cash flow margin. Capital expenditure was slightly higher than the prior quarter but similar to the year-ago level.
- Compared to the prior quarter, operating cash flow and free cash flow were markedly lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, operating cash flow and free cash flow were also substantially lower, with a weaker margin, despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$325.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$383.0M
Cash generated by operations before capital spending.
CapEx
$58.0M
Capital spending and related asset purchases.
FCF margin
7.0%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $4.3B | $1.4B | $52.0M | $1.4B | 32.2% |
| 2024-06-30 | $4.4B | $1.7B | $17.0M | $1.7B | 38.8% |
| 2024-09-30 | $4.6B | $3.0B | $49.0M | $3.0B | 65.8% |
| 2024-12-31 | $4.6B | $383.0M | $58.0M | $325.0M | 7.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 30.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Cash Conversion Decline
The strongest observable driver is the sharp reduction in operating cash flow relative to stable revenue, which drove the decline in free cash flow and margin. This occurred without a corresponding change in capital expenditure.
The weakened cash conversion reduced free cash flow and margin significantly compared to both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow dropped substantially, resulting in a much lower free cash flow and a weakened free cash flow margin. Capital expenditure was slightly higher than the prior quarter but similar to the year-ago level.
Compared to the prior quarter, operating cash flow and free cash flow were markedly lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, operating cash flow and free cash flow were also substantially lower, with a weaker margin, despite higher revenue.
Monitor the relationship between revenue and operating cash flow, as revenue held steady while cash conversion weakened sharply.