Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated positive free cash flow this quarter, a sharp improvement from the prior quarter's negative result. Revenue and operating cash flow both increased sequentially, while capital expenditure was lower than a year ago.
- Operating cash flow turned strongly positive this quarter, driving a healthy free cash flow margin. Capital expenditure remained modest relative to revenue, supporting cash conversion.
- Compared to the prior quarter, revenue and operating cash flow improved markedly, reversing a negative free cash flow position. Versus the same quarter last year, revenue and operating cash flow were lower, but capital expenditure also decreased, resulting in a narrower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$925.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$132.0M
Capital spending and related asset purchases.
FCF margin
23.1%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $3.9B | $534.0M | $175.0M | $359.0M | 9.1% |
| 2024-06-30 | $3.9B | $889.0M | $217.0M | $672.0M | 17.4% |
| 2024-09-30 | $3.4B | -$670.0M | $141.0M | -$811.0M | -24.1% |
| 2024-12-31 | $4.0B | $1.1B | $132.0M | $925.0M | 23.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -156.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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 turned from negative to positive this quarter, the strongest observable driver of the free cash flow improvement. This shift was the primary factor behind the swing in free cash flow.
The recovery in operating cash flow directly enabled positive free cash flow and a solid margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned strongly positive this quarter, driving a healthy free cash flow margin. Capital expenditure remained modest relative to revenue, supporting cash conversion.
Compared to the prior quarter, revenue and operating cash flow improved markedly, reversing a negative free cash flow position. Versus the same quarter last year, revenue and operating cash flow were lower, but capital expenditure also decreased, resulting in a narrower free cash flow margin.
Monitor whether operating cash flow can sustain its positive trajectory given the decline from the year-ago level.