Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply versus both the prior quarter and the year-ago quarter, driving a higher free cash flow margin. Revenue was stable sequentially but higher year-over-year, while capital expenditure remained relatively low in all periods.
- Revenue was unchanged from the prior quarter and higher than a year ago. Operating cash flow rose substantially from both comparison periods, and with capital expenditure little changed, free cash flow and its margin improved markedly.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing the largest relative gains.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$508.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$526.4M
Cash generated by operations before capital spending.
CapEx
$17.7M
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 | $3.4B | $423.8M | $22.1M | $401.7M | 11.7% |
| 2024-03-31 | $3.4B | $132.3M | $20.3M | $112.0M | 3.3% |
| 2024-06-30 | $3.7B | $279.7M | $19.3M | $260.4M | 7.1% |
| 2024-09-30 | $3.7B | $526.4M | $17.7M | $508.7M | 13.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 188.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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 Strength
Operating cash flow was the strongest observable driver, rising significantly from both the prior quarter and the year-ago quarter. This improvement occurred while revenue was stable sequentially and higher year-over-year, and capital expenditure remained low.
The higher operating cash flow directly lifted free cash flow and its margin to levels well above both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter and higher than a year ago. Operating cash flow rose substantially from both comparison periods, and with capital expenditure little changed, free cash flow and its margin improved markedly.
Compared with the immediately preceding quarter, operating cash flow and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing the largest relative gains.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.