Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year, supported by higher operating cash flow and lower capital expenditure. However, free cash flow declined from the prior quarter, as operating cash flow decreased while capital expenditure rose slightly.
- Revenue was stable versus the prior year, while operating cash flow increased, leading to a higher free cash flow margin. The conversion from revenue to free cash flow strengthened year over year, but weakened sequentially due to a drop in operating cash flow.
- Compared to the prior quarter, revenue was higher, but operating cash flow was lower, resulting in a lower free cash flow and margin. Versus the same quarter last year, revenue was stable, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$755.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$443.4M
Capital spending and related asset purchases.
FCF margin
29.7%
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 | $173.0M | $1.3B | $396.7M | $886.9M | 512.7% |
| 2024-06-30 | $196.4M | $1.3B | $325.2M | $1.0B | 515.9% |
| 2024-09-30 | $190.4M | $1.5B | $424.7M | $1.0B | 548.7% |
| 2024-12-31 | $2.5B | $1.2B | $443.4M | $755.6M | 29.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 61.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.4% | 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.
Lower capital expenditure
Capital expenditure decreased compared to the same quarter last year, which directly supported free cash flow improvement. This was the strongest observable driver of the year-over-year increase in free cash flow.
Lower capital expenditure contributed to a higher free cash flow margin year over year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior year, while operating cash flow increased, leading to a higher free cash flow margin. The conversion from revenue to free cash flow strengthened year over year, but weakened sequentially due to a drop in operating cash flow.
Compared to the prior quarter, revenue was higher, but operating cash flow was lower, resulting in a lower free cash flow and margin. Versus the same quarter last year, revenue was stable, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher.
Monitor the trend in operating cash flow, as it declined from the prior quarter despite higher revenue.