Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, capital expenditure, and free cash flow all increased compared to both the prior quarter and the same quarter last year. The free cash flow margin improved relative to the prior quarter but was lower than the same quarter one year earlier.
- Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow rose sharply versus the prior quarter and was also higher year over year. Capital expenditure was slightly lower than the prior quarter but higher than a year ago. Free cash flow was higher in both comparisons, and the free cash flow margin strengthened sequentially but weakened on an annual basis.
- Compared to the previous quarter, revenue, operating cash flow, and free cash flow were higher, with operating cash flow showing the most notable increase. Capital expenditure was slightly lower. Versus the same quarter a year ago, all metrics were higher except the free cash flow margin, which was lower due to a proportionally larger increase in capital expenditure relative to operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$952.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$383.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$410.0M
Cash generated by operations before capital spending.
CapEx
$26.5M
Capital spending and related asset purchases.
FCF margin
31.5%
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 | $1.1B | $272.1M | $33.7M | $238.4M | 22.3% |
| 2024-03-31 | $1.0B | $253.2M | $49.6M | $203.6M | 20.2% |
| 2024-06-30 | $1.1B | $156.0M | $29.2M | $126.8M | 12.0% |
| 2024-09-30 | $1.2B | $410.0M | $26.5M | $383.5M | 31.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 161.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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.
Sharp sequential improvement in operating cash flow
Operating cash flow was substantially higher than the prior quarter, rising from a level that was lower than both the current quarter and the same quarter a year ago. This increase was the strongest observable driver of the higher free cash flow in the current quarter.
The higher operating cash flow directly led to higher free cash flow and improved the free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow rose sharply versus the prior quarter and was also higher year over year. Capital expenditure was slightly lower than the prior quarter but higher than a year ago. Free cash flow was higher in both comparisons, and the free cash flow margin strengthened sequentially but weakened on an annual basis.
Compared to the previous quarter, revenue, operating cash flow, and free cash flow were higher, with operating cash flow showing the most notable increase. Capital expenditure was slightly lower. Versus the same quarter a year ago, all metrics were higher except the free cash flow margin, which was lower due to a proportionally larger increase in capital expenditure relative to operating cash flow.
Monitor the evolution of capital expenditure relative to operating cash flow, as its increase this quarter contributed to a lower free cash flow margin year over year.