Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened this quarter as operating cash flow declined while capital expenditure increased. Revenue was slightly lower than the prior quarter but higher than the same quarter last year.
- Cash conversion weakened as operating cash flow fell relative to revenue, and a higher capital expenditure further reduced free cash flow, resulting in a lower free cash flow margin.
- Compared to the prior quarter, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower. Compared to the same quarter last year, revenue was higher, but operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$535.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$88.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$199.5M
Cash generated by operations before capital spending.
CapEx
$111.2M
Capital spending and related asset purchases.
FCF margin
8.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $1.0B | $133.6M | $52.5M | $81.1M | 7.8% |
| 2024-03-31 | $921.0M | $209.2M | $56.9M | $152.3M | 16.5% |
| 2024-06-30 | $1.0B | $279.4M | $66.1M | $213.3M | 21.2% |
| 2024-09-30 | $994.2M | $199.5M | $111.2M | $88.3M | 8.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.2% | 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.
Capital Expenditure Increase
Capital expenditure was higher compared to both the prior quarter and the same quarter last year, while operating cash flow was lower. This combination drove free cash flow and margin lower.
The higher capital expenditure, despite stable revenue, reduced free cash flow and margin significantly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as operating cash flow fell relative to revenue, and a higher capital expenditure further reduced free cash flow, resulting in a lower free cash flow margin.
Compared to the prior quarter, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower. Compared to the same quarter last year, revenue was higher, but operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower.
Monitor capital expenditure levels, as their increase was the primary factor behind the decline in free cash flow.