Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the preceding quarter and the same quarter a year earlier, supported by higher operating cash flow. The free cash flow margin strengthened sequentially and year-over-year, reflecting a higher proportion of revenue converted to free cash.
- Revenue was stable compared to the previous quarter and higher than the prior year quarter. Operating cash flow increased meaningfully from both periods, while capital expenditure was slightly lower quarter-over-quarter but higher year-over-year. The combination drove free cash flow above both comparison quarters, with the free cash flow margin expanding.
- Compared to the preceding quarter, free cash flow rose, and the margin improved from the prior level. Versus the same quarter a year earlier, free cash flow also increased, and the margin moved higher. Operating cash flow was the primary factor behind both improvements.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$417.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$440.0M
Cash generated by operations before capital spending.
CapEx
$23.0M
Capital spending and related asset purchases.
FCF margin
35.2%
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 | $1.0B | $306.0M | $31.0M | $275.0M | 26.8% |
| 2024-03-31 | $1.3B | $13.0M | $13.0M | $0 | 0.0% |
| 2024-06-30 | $1.2B | $360.0M | $26.0M | $334.0M | 28.4% |
| 2024-09-30 | $1.2B | $440.0M | $23.0M | $417.0M | 35.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 178.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.6B | 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 materially higher than both the preceding quarter and the same quarter a year ago, exceeding the growth in revenue. This directly lifted free cash flow and the free cash flow margin.
The higher operating cash flow provided the primary lift to free cash flow and margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the previous quarter and higher than the prior year quarter. Operating cash flow increased meaningfully from both periods, while capital expenditure was slightly lower quarter-over-quarter but higher year-over-year. The combination drove free cash flow above both comparison quarters, with the free cash flow margin expanding.
Compared to the preceding quarter, free cash flow rose, and the margin improved from the prior level. Versus the same quarter a year earlier, free cash flow also increased, and the margin moved higher. Operating cash flow was the primary factor behind both improvements.
Monitor whether operating cash flow can sustain its current level given capital expenditure was slightly higher than the prior year quarter.