Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved substantially, reflecting stronger cash generation relative to revenue.
- The company converted a larger share of revenue into operating cash flow, while capital expenditure also rose. The resulting free cash flow and free cash flow margin were higher than in both comparison periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, despite a larger capital expenditure outlay.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$630.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$176.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$301.4M
Cash generated by operations before capital spending.
CapEx
$124.6M
Capital spending and related asset purchases.
FCF margin
15.9%
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 | $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% |
| 2024-12-31 | $1.1B | $301.4M | $124.6M | $176.8M | 15.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.5% | 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.
Operating Cash Flow Growth
Operating cash flow increased significantly from both the prior quarter and the year-ago quarter, outpacing revenue growth.
This drove a higher free cash flow margin and overall free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a larger share of revenue into operating cash flow, while capital expenditure also rose. The resulting free cash flow and free cash flow margin were higher than in both comparison periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, despite a larger capital expenditure outlay.
Monitor the level of capital expenditure, which the filing identifies as a primary use of cash, as it increased year over year.