Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher sequentially and year over year. Operating cash flow fell from the prior quarter but improved compared to the same quarter last year, leading to a similar pattern in free cash flow.
- Free cash flow as a percentage of revenue, at a margin above thirty percent, reflected a conversion rate that was lower than the preceding quarter but higher than the year-ago quarter, driven by the relationship between operating cash flow and capital expenditure.
- Compared to the prior quarter, revenue increased while operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Versus the same quarter a year ago, all metrics except capital expenditure were higher, leading to an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$355.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$400.8M
Cash generated by operations before capital spending.
CapEx
$45.8M
Capital spending and related asset purchases.
FCF margin
34.5%
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 | $937.3M | $716.5M | $36.7M | $679.8M | 72.5% |
| 2024-03-31 | $935.3M | $350.2M | $41.2M | $309.0M | 33.0% |
| 2024-06-30 | $975.7M | $540.9M | $44.1M | $496.8M | 50.9% |
| 2024-09-30 | $1.0B | $400.8M | $45.8M | $355.0M | 34.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | 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 volatility
Operating cash flow was lower than the prior quarter despite higher revenue, which was the strongest observable driver of the decline in free cash flow margin.
The drop in operating cash flow more than offset the revenue increase, compressing free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow as a percentage of revenue, at a margin above thirty percent, reflected a conversion rate that was lower than the preceding quarter but higher than the year-ago quarter, driven by the relationship between operating cash flow and capital expenditure.
Compared to the prior quarter, revenue increased while operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Versus the same quarter a year ago, all metrics except capital expenditure were higher, leading to an improved margin.
Monitor the relationship between operating cash flow and revenue, as the divergence between higher revenue and lower cash generation from the preceding quarter may persist.