Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue grew compared to both the prior quarter and the same quarter last year. However, operating cash flow and free cash flow were lower than the year-ago period, resulting in a weakened free cash flow margin year over year, though the margin improved sequentially.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin reflects the proportion of revenue converted to free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin improved. Compared to the same quarter a year ago, revenue was higher but operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$534.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$376.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$403.0M
Cash generated by operations before capital spending.
CapEx
$27.0M
Capital spending and related asset purchases.
FCF margin
10.3%
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 | $2.4B | -$239.0M | $18.0M | -$257.0M | -10.6% |
| 2024-03-31 | $3.1B | $101.0M | $18.0M | $83.0M | 2.7% |
| 2024-06-30 | $3.4B | $354.0M | $22.0M | $332.0M | 9.7% |
| 2024-09-30 | $3.7B | $403.0M | $27.0M | $376.0M | 10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 442.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth
Revenue increased from the prior quarter, contributing to higher operating cash flow and free cash flow.
This revenue growth supported an improvement in free cash flow margin quarter over quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin reflects the proportion of revenue converted to free cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin improved. Compared to the same quarter a year ago, revenue was higher but operating cash flow, free cash flow, and margin were lower.
The effectiveness of the company's profitability initiatives in sustaining free cash flow generation as it returns to growth, as referenced in the management discussion.