Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter, while free cash flow margin slightly weakened. Relative to the same quarter last year, operating cash flow and free cash flow were significantly lower, and the margin notably weakened.
- Revenue rose while operating cash flow also increased, but capital expenditure rose at a higher relative pace, resulting in moderate free cash flow growth and a slightly lower margin.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, but free cash flow margin was slightly lower. Compared to the same quarter one year earlier, all metrics except capital expenditure were substantially lower, with the margin showing a notable decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$794.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$488.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$558.2M
Cash generated by operations before capital spending.
CapEx
$69.8M
Capital spending and related asset purchases.
FCF margin
22.1%
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 | $2.0B | -$251.9M | $19.5M | -$271.4M | -13.6% |
| 2024-03-31 | $2.2B | $136.6M | $41.7M | $94.9M | 4.4% |
| 2024-06-30 | $2.1B | $528.4M | $46.1M | $482.3M | 22.7% |
| 2024-09-30 | $2.2B | $558.2M | $69.8M | $488.4M | 22.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -576.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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.
Operating Cash Flow Decline versus Year Ago
Operating cash flow was lower than the same quarter last year, while revenue was higher, indicating a weakened cash conversion rate. The filing notes that the annual decrease in operating cash flows was primarily due to lower net income adjusted for non-cash items.
The lower operating cash flow was the primary factor behind the year-over-year drop in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow also increased, but capital expenditure rose at a higher relative pace, resulting in moderate free cash flow growth and a slightly lower margin.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, but free cash flow margin was slightly lower. Compared to the same quarter one year earlier, all metrics except capital expenditure were substantially lower, with the margin showing a notable decline.
Monitor the trajectory of capital expenditure, which increased relative to both comparison periods and impacted free cash flow conversion.