Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased sequentially but increased year-over-year. However, operating cash flow and free cash flow were lower than both prior periods, leading to a significantly lower free cash flow margin.
- Cash conversion weakened as operating cash flow fell relative to revenue. The free cash flow margin declined compared to both the preceding quarter and the same quarter one year earlier.
- Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and margin were all lower. Compared to the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$645.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$721.0M
Cash generated by operations before capital spending.
CapEx
$76.0M
Capital spending and related asset purchases.
FCF margin
11.8%
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 | $4.4B | $2.7B | $130.0M | $2.6B | 58.3% |
| 2024-06-30 | $5.9B | $2.5B | $146.0M | $2.4B | 40.6% |
| 2024-09-30 | $8.0B | $2.4B | $77.0M | $2.3B | 28.7% |
| 2024-12-31 | $5.5B | $721.0M | $76.0M | $645.0M | 11.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | n/a | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$434.0M | 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 Shift
Operating cash flow was lower than the preceding quarter and the same quarter last year, even though revenue was higher than the year-ago quarter. This divergence is the primary observable driver of the lower free cash flow.
Reduced cash flow from operations limited free cash flow and compressed the margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as operating cash flow fell relative to revenue. The free cash flow margin declined compared to both the preceding quarter and the same quarter one year earlier.
Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and margin were all lower. Compared to the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin were lower.
Monitor the trend of operating cash flow relative to revenue, as it diverged from the year-over-year revenue increase.