Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow rose sharply, lifting free cash flow higher than the prior quarter and the same quarter last year. The free cash flow margin improved markedly, though revenue was stable across both comparisons.
- Revenue was unchanged sequentially and year-over-year, while operating cash flow increased, resulting in higher free cash flow. Capital expenditure was lower year-over-year but higher than the prior quarter, yet free cash flow and its margin still improved compared to both periods.
- Compared to the prior quarter, operating cash flow and free cash flow both improved, and free cash flow margin strengthened. Versus the same quarter last year, operating cash flow and free cash flow were higher, and free cash flow margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$872.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$315.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$364.0M
Cash generated by operations before capital spending.
CapEx
$48.6M
Capital spending and related asset purchases.
FCF margin
20.9%
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 | $1.5B | $235.5M | $102.0M | $133.5M | 8.7% |
| 2024-03-31 | $1.5B | $263.0M | $46.3M | $216.7M | 14.4% |
| 2024-06-30 | $1.5B | $236.9M | $30.3M | $206.6M | 13.7% |
| 2024-09-30 | $1.5B | $364.0M | $48.6M | $315.4M | 20.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -420.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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
Operating cash flow rose notably from both the prior quarter and the same quarter last year, providing the primary uplift to free cash flow. This increase occurred despite stable revenue and was the strongest observable factor in the period.
Higher operating cash flow directly boosted free cash flow and its margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged sequentially and year-over-year, while operating cash flow increased, resulting in higher free cash flow. Capital expenditure was lower year-over-year but higher than the prior quarter, yet free cash flow and its margin still improved compared to both periods.
Compared to the prior quarter, operating cash flow and free cash flow both improved, and free cash flow margin strengthened. Versus the same quarter last year, operating cash flow and free cash flow were higher, and free cash flow margin also improved.
Monitor capital expenditure levels, which increased sequentially and may affect future free cash flow if the trend continues.