Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from the prior quarter, driven by a sharp increase in operating cash flow. The free cash flow margin returned to a level comparable to the same quarter last year, despite a slight increase in revenue.
- Revenue was higher than the prior quarter. Operating cash flow increased substantially compared to the prior quarter, while capital expenditure decreased. As a result, free cash flow increased markedly, and the free cash flow margin improved to a level similar to the same quarter one year earlier.
- Compared to the prior quarter, operating cash flow and free cash flow were significantly higher, while capital expenditure was slightly lower. Compared to the same quarter one year earlier, operating cash flow and free cash flow were modestly higher, and the free cash flow margin was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$791.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$847.0M
Cash generated by operations before capital spending.
CapEx
$56.0M
Capital spending and related asset purchases.
FCF margin
15.7%
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 | $4.8B | $737.0M | $78.0M | $659.0M | 13.9% |
| 2024-03-31 | $4.8B | $95.0M | $79.0M | $16.0M | 0.3% |
| 2024-06-30 | $4.8B | $262.0M | $79.0M | $183.0M | 3.8% |
| 2024-09-30 | $5.0B | $847.0M | $56.0M | $791.0M | 15.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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.
Recovery in operating cash flow
Operating cash flow rose sharply from the prior quarter, reversing a period of weakness. This increase was the primary driver of the improvement in free cash flow.
The free cash flow margin returned to a level similar to the prior year's same quarter, indicating a normalization of cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter. Operating cash flow increased substantially compared to the prior quarter, while capital expenditure decreased. As a result, free cash flow increased markedly, and the free cash flow margin improved to a level similar to the same quarter one year earlier.
Compared to the prior quarter, operating cash flow and free cash flow were significantly higher, while capital expenditure was slightly lower. Compared to the same quarter one year earlier, operating cash flow and free cash flow were modestly higher, and the free cash flow margin was stable.
Monitor the impact of the payment made in relation to the tax dispute, as noted in the filing, which affected operating cash flow for the nine-month period.