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 both the prior quarter and the same quarter last year, as operating cash flow declined while revenue remained stable. The main factor was a lower operating cash flow conversion.
- Revenue was unchanged from the prior quarter, but operating cash flow decreased, leading to lower free cash flow and a narrower free cash flow margin. Capital expenditure was slightly lower than the prior quarter but higher than a year ago.
- Compared to the prior quarter, revenue was stable, while operating cash flow, free cash flow, and margin were all slightly lower. Versus the same quarter last year, revenue was higher, but operating cash flow, free cash flow, and margin were significantly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$123.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$61.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$153.0M
Cash generated by operations before capital spending.
CapEx
$92.0M
Capital spending and related asset purchases.
FCF margin
4.5%
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 | $1.1B | $67.2M | $91.5M | -$24.3M | -2.1% |
| 2024-03-31 | $1.2B | $117.4M | $93.2M | $24.2M | 2.0% |
| 2024-06-30 | $1.3B | $162.3M | $99.9M | $62.4M | 4.7% |
| 2024-09-30 | $1.3B | $153.0M | $92.0M | $61.0M | 4.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 245.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | 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 Decline
Revenue remained stable, but operating cash flow decreased from the prior quarter and more sharply from the prior year, reducing free cash flow. This was the strongest observable factor affecting cash conversion.
The weakened cash conversion resulted in a lower free cash flow margin compared to both periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow decreased, leading to lower free cash flow and a narrower free cash flow margin. Capital expenditure was slightly lower than the prior quarter but higher than a year ago.
Compared to the prior quarter, revenue was stable, while operating cash flow, free cash flow, and margin were all slightly lower. Versus the same quarter last year, revenue was higher, but operating cash flow, free cash flow, and margin were significantly lower.
Monitor the trend of operating cash flow relative to revenue, as it directly drives free cash flow generation.