Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to both the prior quarter and the same quarter last year. Operating cash flow declined from both periods, while capital expenditure increased, resulting in free cash flow and free cash flow margin that were lower than both the preceding quarter and the year-ago quarter.
- Operating cash flow as a proportion of revenue was lower than the preceding quarter and significantly lower than the year-ago quarter. After accounting for higher capital expenditure relative to revenue, free cash flow conversion weakened further.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower and capital expenditure was higher, causing free cash flow and free cash flow margin to be lower. Compared to the same quarter one year earlier, revenue increased, while operating cash flow, free cash flow, and free cash flow margin all decreased and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$186.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$25.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$95.0M
Cash generated by operations before capital spending.
CapEx
$69.4M
Capital spending and related asset purchases.
FCF margin
3.6%
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 | $656.4M | $139.6M | $376.7M | -$237.1M | -36.1% |
| 2024-06-30 | $677.8M | $58.1M | $72.8M | -$14.7M | -2.2% |
| 2024-09-30 | $692.6M | $100.3M | $60.1M | $40.2M | 5.8% |
| 2024-12-31 | $709.2M | $95.0M | $69.4M | $25.6M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 42.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $3.7B | 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 year-ago quarter, absorbing a larger share of operating cash flow. This was the strongest observable driver of the decline in free cash flow.
Free cash flow and free cash flow margin were lower despite higher revenue, primarily due to increased capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the preceding quarter and significantly lower than the year-ago quarter. After accounting for higher capital expenditure relative to revenue, free cash flow conversion weakened further.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower and capital expenditure was higher, causing free cash flow and free cash flow margin to be lower. Compared to the same quarter one year earlier, revenue increased, while operating cash flow, free cash flow, and free cash flow margin all decreased and capital expenditure was higher.
Monitor whether operating cash flow can recover toward prior levels relative to revenue, as it is a key component of free cash flow generation.