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 prior quarter and the same quarter last year, supported by higher operating cash flow. The free cash flow margin expanded compared with both periods.
- Revenue was lower sequentially but higher year-over-year. Operating cash flow rose sharply from the prior quarter and increased versus last year, driving free cash flow higher despite a slightly higher capital expenditure compared with the prior period. The free cash flow margin strengthened significantly compared with both the preceding quarter and the year-ago period.
- Compared with the prior quarter, revenue was lower while operating cash flow and free cash flow were higher, resulting in a higher free cash flow margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with the free cash flow margin also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$792.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$931.0M
Cash generated by operations before capital spending.
CapEx
$139.0M
Capital spending and related asset purchases.
FCF margin
57.8%
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 | $1.6B | $480.0M | $188.0M | $292.0M | 18.6% |
| 2024-03-31 | $1.5B | $445.0M | $98.0M | $347.0M | 23.6% |
| 2024-06-30 | $1.6B | $475.0M | $84.0M | $391.0M | 24.9% |
| 2024-09-30 | $1.4B | $931.0M | $139.0M | $792.0M | 57.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 232.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.1% | 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.
Strong operating cash flow conversion
Operating cash flow increased substantially from the prior quarter and improved compared with the year-ago period, despite lower sequential revenue. This drove a notable increase in free cash flow and margin.
The quarter generated significantly higher free cash flow than both comparison periods, reinforcing cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower sequentially but higher year-over-year. Operating cash flow rose sharply from the prior quarter and increased versus last year, driving free cash flow higher despite a slightly higher capital expenditure compared with the prior period. The free cash flow margin strengthened significantly compared with both the preceding quarter and the year-ago period.
Compared with the prior quarter, revenue was lower while operating cash flow and free cash flow were higher, resulting in a higher free cash flow margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with the free cash flow margin also higher.
Monitor capital expenditure trends, as the current level moved higher sequentially while year-over-year spending was slightly lower.