Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved sequentially but was lower than the year-ago level.
- Revenue rose while operating cash flow grew at a faster pace than capital expenditure, resulting in higher free cash flow. The free cash flow margin strengthened sequentially but weakened relative to the year-ago quarter.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, free cash flow was higher, but the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$973.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$29.8M
Capital spending and related asset purchases.
FCF margin
61.4%
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 | $1.4B | $1.0B | $20.8M | $1.0B | 71.1% |
| 2024-03-31 | $1.5B | $892.7M | $19.8M | $872.9M | 58.7% |
| 2024-06-30 | $1.5B | $776.9M | $18.2M | $758.7M | 49.5% |
| 2024-09-30 | $1.6B | $1.0B | $29.8M | $973.2M | 61.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 106.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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 Growth
Operating cash flow increased from both the prior quarter and the year-ago quarter, supporting higher free cash flow. The filing notes that net cash provided by operating activities increased in the first nine months of 2024 compared to the same period in 2023 largely due to an increase in revenues.
The rise in operating cash flow was the strongest observable driver of the improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow grew at a faster pace than capital expenditure, resulting in higher free cash flow. The free cash flow margin strengthened sequentially but weakened relative to the year-ago quarter.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, free cash flow was higher, but the free cash flow margin was lower.
Monitor the trend in free cash flow margin, which improved sequentially but declined year-over-year.