Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year, driven by higher revenue and operating cash flow. The company's filing notes a substantial cash and marketable securities position, while also reporting an accumulated deficit.
- Operating cash flow rose relative to the year-ago quarter, while capital expenditure was slightly higher. The resulting free cash flow increased year-over-year, and the free cash flow margin improved compared to the prior year, though it declined sequentially.
- Compared to the immediate prior quarter, free cash flow was marginally lower and the margin tightened, despite higher revenue. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$499.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$531.0M
Cash generated by operations before capital spending.
CapEx
$32.0M
Capital spending and related asset purchases.
FCF margin
18.4%
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 | $2.3B | $485.0M | $29.0M | $456.0M | 19.8% |
| 2024-03-31 | $2.5B | $553.0M | $17.0M | $536.0M | 21.3% |
| 2024-06-30 | $2.6B | $530.0M | $23.0M | $507.0M | 19.3% |
| 2024-09-30 | $2.7B | $531.0M | $32.0M | $499.0M | 18.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 308.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Revenue growth
Revenue increased compared to both the prior quarter and the same quarter last year, providing a larger base for cash generation.
This growth was the primary factor behind the year-over-year improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to the year-ago quarter, while capital expenditure was slightly higher. The resulting free cash flow increased year-over-year, and the free cash flow margin improved compared to the prior year, though it declined sequentially.
Compared to the immediate prior quarter, free cash flow was marginally lower and the margin tightened, despite higher revenue. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the margin improved.
Monitor capital expenditure levels, as they increased from both the prior quarter and the year-ago period, which could affect future free cash flow if the trend continues.