Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined sharply from the prior quarter but was slightly lower than the same quarter last year. The cash conversion weakened as operating cash flow fell while capital expenditure rose.
- Revenue was higher than the prior quarter, yet operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure increased compared to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, free cash flow and margin were significantly lower, driven by a large drop in operating cash flow. Versus the same quarter last year, free cash flow was slightly lower, with operating cash flow also lower and capital expenditure 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
$223.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$420.0M
Cash generated by operations before capital spending.
CapEx
$197.0M
Capital spending and related asset purchases.
FCF margin
14.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $1.5B | $420.0M | $197.0M | $223.0M | 14.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 56.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.9% | 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 Decline
Operating cash flow decreased from the prior quarter and was also lower than the year-ago quarter, despite higher revenue. This was the primary factor behind the weakened free cash flow.
The lower operating cash flow reduced free cash flow and margin significantly 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 the prior quarter, yet operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure increased compared to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, free cash flow and margin were significantly lower, driven by a large drop in operating cash flow. Versus the same quarter last year, free cash flow was slightly lower, with operating cash flow also lower and capital expenditure higher.
Monitor the trend in operating cash flow, which declined substantially from the prior quarter.