Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from a year ago, driven by a large increase in operating cash flow that more than offset a modest rise in capital expenditure. Compared with the prior quarter, revenue and cash flows were lower, resulting in a weaker free cash flow margin.
- Revenue was lower than the prior quarter, but operating cash flow declined more sharply, while capital expenditure also decreased. The resulting free cash flow and free cash flow margin were both lower than the preceding quarter. Compared with the same quarter last year, revenue was higher, operating cash flow was substantially higher, and capital expenditure was slightly higher, leading to a positive free cash flow margin versus a negative one a year ago.
- Compared with the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all were lower. Compared with the same quarter one year earlier, all metrics were higher, with free cash flow turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$669.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$182.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$221.0M
Cash generated by operations before capital spending.
CapEx
$39.0M
Capital spending and related asset purchases.
FCF margin
10.3%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $2.0B | $153.0M | $52.0M | $101.0M | 5.1% |
| 2024-03-31 | $1.8B | $182.0M | $55.0M | $127.0M | 7.0% |
| 2024-06-30 | $1.9B | $340.0M | $81.0M | $259.0M | 13.6% |
| 2024-09-30 | $1.8B | $221.0M | $39.0M | $182.0M | 10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 183.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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 Recovery
Operating cash flow improved markedly from the year-ago quarter, rising from a low level to a significantly higher amount. This recovery was the primary factor behind the swing from negative to positive free cash flow.
Free cash flow margin improved from a negative figure to a positive one, strengthening the company's cash generation position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, but operating cash flow declined more sharply, while capital expenditure also decreased. The resulting free cash flow and free cash flow margin were both lower than the preceding quarter. Compared with the same quarter last year, revenue was higher, operating cash flow was substantially higher, and capital expenditure was slightly higher, leading to a positive free cash flow margin versus a negative one a year ago.
Compared with the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all were lower. Compared with the same quarter one year earlier, all metrics were higher, with free cash flow turning from negative to positive.
Monitor the trend in operating cash flow relative to revenue, as its decline from the prior quarter was larger than the revenue decline, suggesting a change in cash conversion efficiency.