Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both increased compared to the prior quarter and the same quarter last year. The free cash flow margin narrowed versus both comparison periods, reflecting a proportionally larger rise in revenue relative to free cash flow.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin, while still positive, was lower than in both the immediately preceding quarter and the same quarter one year earlier, indicating that a smaller share of revenue converted into free cash flow.
- Compared to the prior quarter, revenue was higher while operating cash flow was stable, leading to a higher free cash flow but a lower margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, yet the margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$19.4M
Capital spending and related asset purchases.
FCF margin
32.8%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $1.3B | $895.7M | $31.3M | $864.4M | 67.3% |
| 2024-03-31 | $3.7B | $939.8M | $17.8M | $922.1M | 25.0% |
| 2024-06-30 | $2.8B | $1.2B | $12.4M | $1.1B | 41.0% |
| 2024-09-30 | $3.7B | $1.2B | $19.4M | $1.2B | 32.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 154.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue was higher than both the prior quarter and the same quarter last year, which supported an increase in free cash flow. The filing notes that management and advisory fees are earned as a percentage of various asset-based calculation bases, providing context for revenue generation.
Higher revenue was the strongest observable driver of the increase in free cash flow compared to both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin, while still positive, was lower than in both the immediately preceding quarter and the same quarter one year earlier, indicating that a smaller share of revenue converted into free cash flow.
Compared to the prior quarter, revenue was higher while operating cash flow was stable, leading to a higher free cash flow but a lower margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, yet the margin was lower.
Monitor the trajectory of the free cash flow margin, as it declined relative to both comparison periods despite higher absolute free cash flow.