Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but declined from the prior year quarter. The cash conversion rate strengthened versus the preceding quarter, though capital expenditure increased year over year.
- Revenue was stable quarter over quarter and year over year. Operating cash flow rose sequentially, lifting free cash flow and margin, but fell slightly from the year-ago level, resulting in a lower free cash flow margin compared to the same quarter last year.
- 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 capital expenditure increased while operating cash flow was slightly reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$550.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$786.7M
Cash generated by operations before capital spending.
CapEx
$236.4M
Capital spending and related asset purchases.
FCF margin
13.8%
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 | $3.9B | $852.5M | $262.6M | $589.9M | 15.0% |
| 2024-03-31 | $3.8B | $649.4M | $201.5M | $447.9M | 11.9% |
| 2024-06-30 | $4.0B | $611.1M | $196.9M | $414.2M | 10.4% |
| 2024-09-30 | $4.0B | $786.7M | $236.4M | $550.3M | 13.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | 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 Improvement
Operating cash flow increased sequentially, providing the primary lift to free cash flow. The filing notes continued cash generation from operations.
This sequential improvement in operating cash flow directly supported the higher free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable quarter over quarter and year over year. Operating cash flow rose sequentially, lifting free cash flow and margin, but fell slightly from the year-ago level, resulting in a lower free cash flow margin compared to the same quarter last year.
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 capital expenditure increased while operating cash flow was slightly reduced.
Monitor the trajectory of capital expenditure, which rose from both the prior quarter and the year-ago period.