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 the same quarter last year. Free cash flow and margin improved significantly from both periods, driven by higher operating cash flow and lower capital expenditure.
- Operating cash flow increased notably relative to revenue, while capital expenditure declined, leading to a higher free cash flow margin.
- Compared to the prior quarter, revenue was stable, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher. Versus the year-ago quarter, revenue was higher, operating cash flow was higher, capital expenditure was slightly lower, and free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$783.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$355.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$479.5M
Cash generated by operations before capital spending.
CapEx
$124.0M
Capital spending and related asset purchases.
FCF margin
24.7%
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 | $1.3B | $322.1M | $145.7M | $176.4M | 13.3% |
| 2024-03-31 | $1.4B | $252.7M | $131.9M | $120.8M | 8.7% |
| 2024-06-30 | $1.4B | $267.5M | $136.7M | $130.8M | 9.1% |
| 2024-09-30 | $1.4B | $479.5M | $124.0M | $355.5M | 24.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 251.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.0B | 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 rose substantially from both the prior quarter and the year-ago period, while capital expenditure decreased, improving cash conversion.
This drove higher free cash flow and margin, strengthening liquidity.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased notably relative to revenue, while capital expenditure declined, leading to a higher free cash flow margin.
Compared to the prior quarter, revenue was stable, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher. Versus the year-ago quarter, revenue was higher, operating cash flow was higher, capital expenditure was slightly lower, and free cash flow and margin were higher.
Monitor the level of capital expenditure, which decreased from both the prior and year-ago quarters.