Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved versus the same quarter last year, though both weakened sequentially. The quarter's cash conversion was supported by revenue that remained stable from the prior quarter while operating cash flow declined.
- With revenue stable sequentially and operating cash flow lower, the free cash flow margin narrowed compared to the immediately preceding quarter. Compared to the same quarter last year, revenue was higher and operating cash flow was higher, resulting in an improved free cash flow margin.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Compared to the same quarter a year earlier, all key metrics were higher, with free cash flow margin improving.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$341.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$361.0M
Cash generated by operations before capital spending.
CapEx
$20.0M
Capital spending and related asset purchases.
FCF margin
28.8%
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 | $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% |
| 2024-12-31 | $1.2B | $361.0M | $20.0M | $341.0M | 28.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and operating cash flow growth over prior year
Revenue was higher than the same quarter a year ago, and operating cash flow was also higher, supporting a larger free cash flow despite a lower capital expenditure level.
The year-over-year improvement in free cash flow margin was the strongest observable positive shift in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue stable sequentially and operating cash flow lower, the free cash flow margin narrowed compared to the immediately preceding quarter. Compared to the same quarter last year, revenue was higher and operating cash flow was higher, resulting in an improved free cash flow margin.
Compared to the prior quarter, operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Compared to the same quarter a year earlier, all key metrics were higher, with free cash flow margin improving.
Monitor the trend in capital expenditure, which was lower both sequentially and year-over-year and contributed to free cash flow relative to operating cash flow.