Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined sequentially but rose year-over-year. Operating cash flow and free cash flow weakened from the prior quarter, but both improved significantly compared to the same quarter last year, turning from negative to positive.
- Operating cash flow was much lower than revenue, yielding a modest free cash flow margin. Capital expenditure remained relatively stable across all periods, so the sequential decline in free cash flow was driven primarily by the drop in operating cash flow.
- Compared to the previous quarter, both operating cash flow and free cash flow decreased substantially, and the free cash flow margin narrowed. Relative to the same quarter one year earlier, operating cash flow and free cash flow improved markedly, with the margin turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$827.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$36.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$60.0M
Cash generated by operations before capital spending.
CapEx
$24.0M
Capital spending and related asset purchases.
FCF margin
1.0%
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 | $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% |
| 2024-12-31 | $3.5B | $60.0M | $24.0M | $36.0M | 1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 45.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.6B | 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 contraction
Operating cash flow dropped from a high level in the prior quarter to a much lower level this quarter, while capital expenditure remained nearly flat. This resulted in a material reduction in free cash flow and margin.
The weakened cash conversion efficiency made free cash flow more sensitive to revenue changes.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was much lower than revenue, yielding a modest free cash flow margin. Capital expenditure remained relatively stable across all periods, so the sequential decline in free cash flow was driven primarily by the drop in operating cash flow.
Compared to the previous quarter, both operating cash flow and free cash flow decreased substantially, and the free cash flow margin narrowed. Relative to the same quarter one year earlier, operating cash flow and free cash flow improved markedly, with the margin turning from negative to positive.
Monitor the volatility in operating cash flow, which declined sharply from the prior quarter after a period of strong performance.