Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved versus the same quarter last year, driven by higher operating cash flow and lower capital expenditure. Compared to the prior quarter, free cash flow and margin weakened as operating cash flow decreased while capital expenditure stayed relatively stable.
- Revenue was stable sequentially and higher year over year. Operating cash flow was lower than the previous quarter but slightly higher than a year ago. The combination of operating cash flow and capital expenditure resulted in free cash flow and margin that were improved relative to the year-ago quarter but weakened versus the prior quarter.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, primarily because operating cash flow declined. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by a slight increase in operating cash flow and a reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$813.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$205.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$324.8M
Cash generated by operations before capital spending.
CapEx
$118.9M
Capital spending and related asset purchases.
FCF margin
14.5%
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 | $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% |
| 2024-12-31 | $1.4B | $324.8M | $118.9M | $205.9M | 14.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 118.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | 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 Volatility
Revenue was unchanged sequentially, yet operating cash flow declined from the prior quarter by a meaningful amount. This shift was the strongest observable driver of the sequential free cash flow decrease, as capital expenditure remained relatively similar.
If operating cash flow does not stabilize or improve, free cash flow may continue to be pressured even with stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year over year. Operating cash flow was lower than the previous quarter but slightly higher than a year ago. The combination of operating cash flow and capital expenditure resulted in free cash flow and margin that were improved relative to the year-ago quarter but weakened versus the prior quarter.
Compared to the immediately preceding quarter, free cash flow and margin were lower, primarily because operating cash flow declined. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by a slight increase in operating cash flow and a reduction in capital expenditure.
Monitor the level of operating cash flow relative to revenue, as it was the primary factor in the quarter-over-quarter change in free cash flow.