Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were lower than both the prior quarter and the same quarter last year, yet free cash flow margin improved compared to a year ago. Capital expenditure remained minimal across all periods.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the same quarter last year, resulting in a free cash flow margin that weakened sequentially but strengthened year over year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow were higher, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$638.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$642.0M
Cash generated by operations before capital spending.
CapEx
$4.0M
Capital spending and related asset purchases.
FCF margin
25.1%
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 | $2.9B | $353.0M | $7.0M | $346.0M | 11.8% |
| 2024-06-30 | $2.5B | $742.0M | $5.0M | $737.0M | 29.0% |
| 2024-09-30 | $3.3B | $912.0M | $6.0M | $906.0M | 27.3% |
| 2024-12-31 | $2.5B | $642.0M | $4.0M | $638.0M | 25.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 157.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $193.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash conversion strength
Despite lower revenue, operating cash flow and free cash flow were higher than the same quarter last year, leading to a materially improved free cash flow margin.
The strongest observable driver is the year-over-year increase in operating cash flow, which directly lifted free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the same quarter last year, resulting in a free cash flow margin that weakened sequentially but strengthened year over year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow were higher, and free cash flow margin improved.
Monitor whether operating cash flow can sustain its year-over-year improvement given the decline in revenue.