Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose relative to the prior quarter and the year-ago period. Free cash flow margin narrowed compared to both periods, as operating cash flow did not keep pace with revenue growth.
- Revenue growth was accompanied by a decline in operating cash flow from the prior quarter, leading to a lower free cash flow margin. Capital expenditure remained stable, so the change in free cash flow was driven by operating cash flow.
- Compared to the preceding quarter, revenue increased but operating cash flow decreased, resulting in a lower free cash flow margin. Relative to the same quarter one year earlier, revenue and operating cash flow both improved, yet the margin was lower due to a proportionally larger increase in revenue.
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
$486.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$518.0M
Cash generated by operations before capital spending.
CapEx
$32.0M
Capital spending and related asset purchases.
FCF margin
16.9%
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 | $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% |
| 2024-12-31 | $2.9B | $518.0M | $32.0M | $486.0M | 16.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 344.7% | 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.
Revenue Expansion
Quarterly revenue was higher than both the preceding quarter and the same period last year, while operating cash flow only increased year over year and decreased sequentially.
The larger revenue base supported a higher absolute free cash flow compared to the year-ago quarter, but the margin declined.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth was accompanied by a decline in operating cash flow from the prior quarter, leading to a lower free cash flow margin. Capital expenditure remained stable, so the change in free cash flow was driven by operating cash flow.
Compared to the preceding quarter, revenue increased but operating cash flow decreased, resulting in a lower free cash flow margin. Relative to the same quarter one year earlier, revenue and operating cash flow both improved, yet the margin was lower due to a proportionally larger increase in revenue.
Monitor the trend in free cash flow margin, as it has declined in consecutive comparisons despite higher revenue.