Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter and also rose from the same quarter last year, driven by stronger operating cash flow. The free cash flow margin widened compared to both periods, reflecting a higher conversion of revenue into cash.
- Revenue was lower than both the prior quarter and the year-ago quarter, yet operating cash flow increased substantially, leading to a higher free cash flow margin. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter, supporting the improvement in free cash flow.
- Compared to the prior quarter, free cash flow and its margin both improved, while revenue was lower. Versus the same quarter last year, free cash flow and margin also improved, despite lower revenue and lower operating income.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$630.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$730.0M
Cash generated by operations before capital spending.
CapEx
$99.6M
Capital spending and related asset purchases.
FCF margin
14.9%
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 | $4.2B | $611.7M | $99.7M | $512.0M | 12.3% |
| 2024-03-31 | $3.9B | $317.2M | $93.2M | $224.0M | 5.8% |
| 2024-06-30 | $4.5B | $452.1M | $88.1M | $364.0M | 8.2% |
| 2024-09-30 | $4.2B | $730.0M | $99.6M | $630.4M | 14.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 221.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Stronger operating cash flow
Operating cash flow rose significantly from both the prior quarter and the year-ago quarter, even as revenue declined. This was the primary factor behind the improvement in free cash flow and margin.
The higher operating cash flow more than offset the lower revenue and slightly higher capital expenditure, resulting in a stronger free cash flow position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, yet operating cash flow increased substantially, leading to a higher free cash flow margin. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter, supporting the improvement in free cash flow.
Compared to the prior quarter, free cash flow and its margin both improved, while revenue was lower. Versus the same quarter last year, free cash flow and margin also improved, despite lower revenue and lower operating income.
Monitor the trend in operating cash flow relative to revenue, as the current quarter's conversion improved despite lower sales.