Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from the prior quarter, driven by a significant increase in operating cash flow. Free cash flow margin strengthened, though it remained below the level of the same quarter one year earlier.
- Revenue was stable compared to both the prior quarter and the year-ago quarter. Operating cash flow rose substantially from the prior quarter, leading to a higher free cash flow and an improved free cash flow margin, despite a modest increase in capital expenditure.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow declined while capital expenditure increased slightly.
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
$646.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$755.0M
Cash generated by operations before capital spending.
CapEx
$109.0M
Capital spending and related asset purchases.
FCF margin
25.1%
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 | $2.6B | $122.0M | $126.0M | -$4.0M | -0.2% |
| 2024-03-31 | $2.6B | $615.0M | $143.0M | $472.0M | 18.5% |
| 2024-06-30 | $2.6B | $367.0M | $89.0M | $278.0M | 10.8% |
| 2024-09-30 | $2.6B | $755.0M | $109.0M | $646.0M | 25.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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 Recovery
Operating cash flow increased substantially from the prior quarter, more than offsetting a modest rise in capital expenditure. This was the strongest observable driver of the improvement in free cash flow and margin.
The higher operating cash flow directly lifted free cash flow and margin, reversing the weaker performance seen in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to both the prior quarter and the year-ago quarter. Operating cash flow rose substantially from the prior quarter, leading to a higher free cash flow and an improved free cash flow margin, despite a modest increase in capital expenditure.
Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow declined while capital expenditure increased slightly.
Monitor whether operating cash flow can sustain its improvement from the prior quarter, as it is the primary driver of free cash flow variability.