Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared to the same quarter one year earlier, driven by a substantial increase in operating cash flow. However, free cash flow was lower than the immediately preceding quarter, as operating cash flow declined while capital expenditure remained stable.
- Revenue was stable compared to the prior quarter, but operating cash flow decreased, leading to a lower free cash flow margin. The free cash flow margin improved markedly from the same quarter one year earlier, when operating cash flow was minimal and free cash flow was negative.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, while revenue was stable and capital expenditure was slightly higher. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, revenue was higher, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$721.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$760.9M
Cash generated by operations before capital spending.
CapEx
$39.3M
Capital spending and related asset purchases.
FCF margin
29.4%
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 | $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% |
| 2024-12-31 | $2.5B | $760.9M | $39.3M | $721.6M | 29.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 270.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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 Recovery
Operating cash flow increased substantially compared to the same quarter one year earlier, from a minimal level to a significantly higher amount. This was the strongest observable driver of the improvement in free cash flow.
Free cash flow turned from negative to positive compared to the same quarter one year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, but operating cash flow decreased, leading to a lower free cash flow margin. The free cash flow margin improved markedly from the same quarter one year earlier, when operating cash flow was minimal and free cash flow was negative.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, while revenue was stable and capital expenditure was slightly higher. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, revenue was higher, and capital expenditure was lower.
Monitor operating cash flow trends, as the current quarter's level was lower than the prior quarter despite stable revenue.