Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened compared to the same quarter last year but improved from the prior quarter. Operating cash flow remained stable while capital expenditure was higher than a year ago.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow was stable across all periods, while capital expenditure increased compared to the same quarter last year, resulting in a lower free cash flow margin year over year.
- Compared to the prior quarter, free cash flow margin improved as revenue decreased but operating cash flow held steady and capital expenditure was slightly lower. Versus the same quarter last year, free cash flow margin weakened due to higher capital expenditure and a smaller proportion of operating cash flow converted to free cash flow.
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
$991.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$26.2M
Capital spending and related asset purchases.
FCF margin
65.0%
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 | $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% |
| 2024-12-31 | $1.5B | $1.0B | $26.2M | $991.7M | 65.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | 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.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the same quarter last year, which directly reduced free cash flow despite stable operating cash flow.
The higher capital expenditure was the strongest observable driver of the weakened free cash flow margin compared to a year ago.
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 higher than a year ago. Operating cash flow was stable across all periods, while capital expenditure increased compared to the same quarter last year, resulting in a lower free cash flow margin year over year.
Compared to the prior quarter, free cash flow margin improved as revenue decreased but operating cash flow held steady and capital expenditure was slightly lower. Versus the same quarter last year, free cash flow margin weakened due to higher capital expenditure and a smaller proportion of operating cash flow converted to free cash flow.
Monitor the trend in capital expenditure relative to operating cash flow, as higher spending this quarter reduced free cash flow conversion.