Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the prior quarter and the same quarter last year. The free cash flow margin strengthened versus both periods, reflecting higher operating cash flow relative to revenue.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin improved compared to both the prior quarter and the year-ago quarter, indicating a higher proportion of revenue converted into free cash flow.
- Compared to the prior quarter, revenue was higher while operating cash flow was slightly lower, leading to a lower free cash flow and a weakened free cash flow margin. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with a strengthened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$250.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$356.0M
Cash generated by operations before capital spending.
CapEx
$106.0M
Capital spending and related asset purchases.
FCF margin
10.0%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $2.3B | $527.0M | $72.0M | $455.0M | 19.9% |
| 2024-03-31 | $2.4B | $154.0M | $104.0M | $50.0M | 2.1% |
| 2024-06-30 | $2.4B | $360.0M | $92.0M | $268.0M | 11.2% |
| 2024-09-30 | $2.5B | $356.0M | $106.0M | $250.0M | 10.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.5B | 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 supporting cash generation
Revenue was higher than both the prior quarter and the year-ago quarter, and operating cash flow was substantially higher than the year-ago quarter. This combination drove a higher free cash flow and an improved free cash flow margin compared to the same quarter last year.
Higher revenue and operating cash flow compared to the year-ago quarter were the strongest observable drivers of the improved free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin improved compared to both the prior quarter and the year-ago quarter, indicating a higher proportion of revenue converted into free cash flow.
Compared to the prior quarter, revenue was higher while operating cash flow was slightly lower, leading to a lower free cash flow and a weakened free cash flow margin. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with a strengthened free cash flow margin.
Monitor the trend in capital expenditure relative to operating cash flow, as a higher capital expenditure in the current quarter compared to the prior quarter reduced free cash flow.