Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow rose sharply compared to both the prior quarter and the same quarter last year, driven by stronger operating cash flow. The free cash flow margin expanded significantly even as revenue declined from the previous quarter.
- Revenue was stable compared to the year-ago quarter but lower than the prior quarter. Operating cash flow improved markedly, resulting in higher free cash flow and margin.
- Compared to the prior quarter, free cash flow improved substantially while revenue declined. Versus the same quarter last year, free cash flow was significantly higher with revenue unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$486.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$265.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$267.9M
Cash generated by operations before capital spending.
CapEx
$2.7M
Capital spending and related asset purchases.
FCF margin
6.3%
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 | $4.4B | -$33.3M | $8.6M | -$41.9M | -1.0% |
| 2024-06-30 | $4.5B | $166.4M | $6.6M | $159.8M | 3.6% |
| 2024-09-30 | $4.6B | $108.1M | $4.7M | $103.3M | 2.2% |
| 2024-12-31 | $4.2B | $267.9M | $2.7M | $265.3M | 6.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 177.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.2B | 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 strength
Operating cash flow increased sharply from both the prior quarter and the year-ago quarter, indicating improved cash generation from operations.
This was the primary factor behind the expansion of free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the year-ago quarter but lower than the prior quarter. Operating cash flow improved markedly, resulting in higher free cash flow and margin.
Compared to the prior quarter, free cash flow improved substantially while revenue declined. Versus the same quarter last year, free cash flow was significantly higher with revenue unchanged.
The capital expenditure level remained low relative to operating cash flow, which may warrant attention if sustained.