Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved compared to the immediately preceding quarter and the same quarter one year earlier. Free cash flow margin strengthened versus both prior periods, reflecting higher operating cash flow relative to revenue.
- Revenue remained stable sequentially, while operating cash flow increased, driving free cash flow higher despite a rise in capital expenditure. The free cash flow margin improved as operating cash flow growth outpaced capital expenditure.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, with free cash flow margin also improved. Versus the same quarter last year, all metrics were higher except capital expenditure, which was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$353.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$526.8M
Cash generated by operations before capital spending.
CapEx
$172.9M
Capital spending and related asset purchases.
FCF margin
12.4%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $2.7B | $569.2M | $132.7M | $436.5M | 16.2% |
| 2024-06-30 | $3.0B | $562.6M | $140.5M | $422.1M | 14.2% |
| 2024-09-30 | $2.8B | $446.5M | $147.5M | $299.0M | 10.7% |
| 2024-12-31 | $2.8B | $526.8M | $172.9M | $353.9M | 12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 106.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $748.5M | 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 was materially higher than both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This occurred even as revenue remained flat sequentially.
Higher operating cash flow drove a stronger free cash flow margin despite increased capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable sequentially, while operating cash flow increased, driving free cash flow higher despite a rise in capital expenditure. The free cash flow margin improved as operating cash flow growth outpaced capital expenditure.
Compared to the prior quarter, operating cash flow and free cash flow were higher, with free cash flow margin also improved. Versus the same quarter last year, all metrics were higher except capital expenditure, which was slightly lower.
Monitor capital expenditure trends, as the sequential increase partially offset the operating cash flow improvement in free cash flow generation.