Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin also strengthened, reflecting better cash conversion.
- Revenue was moderately higher than the prior quarter, while operating cash flow increased substantially, leading to a higher free cash flow. Capital expenditure also rose, but the increase was more than offset by the growth in operating cash flow, resulting in an improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow grew and the margin expanded. Relative to the same quarter one year earlier, both free cash flow and margin were significantly higher.
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
$837.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$920.0M
Cash generated by operations before capital spending.
CapEx
$83.0M
Capital spending and related asset purchases.
FCF margin
16.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $5.1B | $920.0M | $83.0M | $837.0M | 16.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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 Growth
Operating cash flow rose compared to both the prior quarter and the year-ago quarter, outpacing the growth in revenue. This was the primary factor behind the improvement in free cash flow.
The stronger operating cash flow directly lifted free cash flow and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was moderately higher than the prior quarter, while operating cash flow increased substantially, leading to a higher free cash flow. Capital expenditure also rose, but the increase was more than offset by the growth in operating cash flow, resulting in an improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow grew and the margin expanded. Relative to the same quarter one year earlier, both free cash flow and margin were significantly higher.
The company's full-year operating cash flow was reduced by a payment related to a dispute with the ITD, as noted in the filing, which may affect the comparability of quarterly cash flows.