Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the same quarter last year. Free cash flow margin improved year-over-year but was slightly lower than the preceding quarter.
- Operating cash flow represented a high proportion of revenue, and after capital expenditure, free cash flow margin was higher than a year earlier but lower than the prior quarter.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, while free cash flow was slightly lower and margin decreased. Versus the same quarter one year ago, all metrics improved significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$671.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$810.4M
Cash generated by operations before capital spending.
CapEx
$139.0M
Capital spending and related asset purchases.
FCF margin
20.6%
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 | $3.1B | $485.2M | $159.0M | $326.2M | 10.4% |
| 2024-03-31 | $3.1B | -$134.8M | $121.0M | -$255.9M | -8.3% |
| 2024-06-30 | $3.2B | $798.8M | $124.7M | $674.1M | 21.2% |
| 2024-09-30 | $3.3B | $810.4M | $139.0M | $671.4M | 20.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 312.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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.
Operating cash flow growth
Operating cash flow increased from both the prior quarter and the year-ago quarter, alongside higher revenue.
This supported a higher free cash flow margin compared to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow represented a high proportion of revenue, and after capital expenditure, free cash flow margin was higher than a year earlier but lower than the prior quarter.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, while free cash flow was slightly lower and margin decreased. Versus the same quarter one year ago, all metrics improved significantly.
Monitor acquisition spending, which has risen substantially year-to-date according to the filing.