Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow relative to revenue. Capital expenditure increased sequentially but remained stable as a share of revenue.
- Revenue rose while operating cash flow grew at a faster pace, resulting in a higher free cash flow margin. Capital expenditure increased but did not offset the improvement in cash conversion.
- Compared to the prior quarter, free cash flow and margin were higher, driven by stronger operating cash flow. Versus the same quarter last year, all metrics improved, with operating cash flow and free cash flow showing the largest relative gains.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$823.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$179.0M
Capital spending and related asset purchases.
FCF margin
19.6%
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 | $3.7B | $957.0M | $267.0M | $690.0M | 18.5% |
| 2024-03-31 | $3.9B | $164.0M | $179.0M | -$15.0M | -0.4% |
| 2024-06-30 | $4.1B | $813.0M | $155.0M | $658.0M | 16.0% |
| 2024-09-30 | $4.2B | $1.0B | $179.0M | $823.0M | 19.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 175.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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.
Operating Cash Flow Growth
Operating cash flow increased more than revenue on a sequential and year-over-year basis, directly lifting free cash flow and margin. This was the strongest observable driver of the quarter's cash conversion improvement.
Higher operating cash flow was the primary factor behind the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow grew at a faster pace, resulting in a higher free cash flow margin. Capital expenditure increased but did not offset the improvement in cash conversion.
Compared to the prior quarter, free cash flow and margin were higher, driven by stronger operating cash flow. Versus the same quarter last year, all metrics improved, with operating cash flow and free cash flow showing the largest relative gains.
Monitor the trend in capital expenditure relative to operating cash flow, as its increase this quarter did not hinder cash conversion but could affect future free cash flow if it outpaces cash generation.