Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter but higher than a year earlier. Operating cash flow and free cash flow weakened from the prior quarter but improved year over year.
- The conversion of revenue into free cash flow weakened sequentially as operating cash flow declined while revenue remained stable, resulting in a lower free cash flow margin. Compared to the same quarter last year, the conversion improved with higher operating cash flow and free cash flow.
- Sequentially, free cash flow and margin were lower due to a decline in operating cash flow and a rise in capital expenditure. Year over year, free cash flow and margin were higher, supported by increased operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$377.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$547.6M
Cash generated by operations before capital spending.
CapEx
$170.7M
Capital spending and related asset purchases.
FCF margin
11.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $3.3B | $547.6M | $170.7M | $377.0M | 11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | 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.
Operating cash flow decline
Operating cash flow decreased from the prior quarter while revenue remained unchanged, leading to a lower free cash flow.
This decline was the primary factor behind the weakened free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion of revenue into free cash flow weakened sequentially as operating cash flow declined while revenue remained stable, resulting in a lower free cash flow margin. Compared to the same quarter last year, the conversion improved with higher operating cash flow and free cash flow.
Sequentially, free cash flow and margin were lower due to a decline in operating cash flow and a rise in capital expenditure. Year over year, free cash flow and margin were higher, supported by increased operating cash flow.
Monitor the level of operating cash flow relative to revenue, as it declined from the prior quarter.