Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by higher operating cash flow while revenue remained stable. The free cash flow margin widened significantly, reflecting stronger cash conversion from revenue.
- Revenue was unchanged from both comparison periods, but operating cash flow rose substantially, lifting free cash flow and the free cash flow margin. Capital expenditure was lower than a year ago, further supporting free cash flow.
- Compared to the prior quarter, free cash flow and margin improved as operating cash flow increased while revenue was stable. Versus the same quarter last year, free cash flow and margin also improved, with operating cash flow higher and capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$900.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$935.6M
Cash generated by operations before capital spending.
CapEx
$35.0M
Capital spending and related asset purchases.
FCF margin
36.5%
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 | $2.4B | $12.5M | $65.2M | -$52.7M | -2.2% |
| 2024-03-31 | $2.3B | $553.2M | $45.9M | $507.3M | 22.1% |
| 2024-06-30 | $2.5B | $625.8M | $33.5M | $592.3M | 24.0% |
| 2024-09-30 | $2.5B | $935.6M | $35.0M | $900.6M | 36.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 231.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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.
Operating Cash Flow Strength
Operating cash flow was the strongest observable driver, rising significantly from both the prior quarter and the year-ago quarter, while revenue remained flat. This directly lifted free cash flow and margin without any change in revenue.
The improvement in operating cash flow was the primary factor behind the higher free cash flow and margin in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from both comparison periods, but operating cash flow rose substantially, lifting free cash flow and the free cash flow margin. Capital expenditure was lower than a year ago, further supporting free cash flow.
Compared to the prior quarter, free cash flow and margin improved as operating cash flow increased while revenue was stable. Versus the same quarter last year, free cash flow and margin also improved, with operating cash flow higher and capital expenditure lower.
Monitor whether operating cash flow can sustain its elevated level given the stable revenue base.