Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared with the prior quarter and the same quarter last year. The free cash flow margin strengthened sequentially and year-over-year, reflecting a positive cash conversion shift.
- Operating cash flow turned positive this quarter after a negative prior quarter, while capital expenditure remained stable. Free cash flow margin improved meaningfully, indicating a stronger conversion of revenue into free cash flow.
- Compared with the previous quarter, revenue, operating cash flow, free cash flow, and margin all improved, with operating cash flow shifting from negative to positive. Year-over-year, all metrics also improved, with free cash flow margin higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$982.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$227.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$236.7M
Cash generated by operations before capital spending.
CapEx
$8.8M
Capital spending and related asset purchases.
FCF margin
14.3%
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 | $1.7B | $207.4M | $22.8M | $184.6M | 10.7% |
| 2024-06-30 | $1.9B | $721.0M | $17.8M | $703.2M | 36.2% |
| 2024-09-30 | $1.4B | -$125.5M | $7.9M | -$133.4M | -9.4% |
| 2024-12-31 | $1.6B | $236.7M | $8.8M | $227.9M | 14.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 160.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.4B | 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 turned positive this quarter after a negative prior quarter, driving a corresponding improvement in free cash flow and margin. This recovery is the most observable change among the supplied metrics.
The swing in operating cash flow directly enabled positive free cash flow and a higher margin compared with the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned positive this quarter after a negative prior quarter, while capital expenditure remained stable. Free cash flow margin improved meaningfully, indicating a stronger conversion of revenue into free cash flow.
Compared with the previous quarter, revenue, operating cash flow, free cash flow, and margin all improved, with operating cash flow shifting from negative to positive. Year-over-year, all metrics also improved, with free cash flow margin higher.
Monitor whether the positive operating cash flow trend sustains, given the volatility observed between the prior negative quarter and the current positive quarter.