Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved significantly compared to the same quarter last year, driven by a higher operating cash flow relative to revenue. However, sequentially, both revenue and free cash flow margin declined from the prior quarter.
- Revenue was lower than the preceding quarter but higher than a year ago. Operating cash flow increased year-over-year, while capital expenditure remained below the prior quarter level, resulting in free cash flow that was higher than the year-ago period but lower than the previous quarter. The free cash flow margin reflected this mixed trend.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, all these metrics were higher, with the free cash flow margin showing the largest relative improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$694.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$777.0M
Cash generated by operations before capital spending.
CapEx
$83.0M
Capital spending and related asset purchases.
FCF margin
16.6%
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 | $4.4B | $743.0M | $82.0M | $661.0M | 15.1% |
| 2024-06-30 | $4.4B | $1.1B | $92.0M | $998.0M | 22.8% |
| 2024-09-30 | $4.6B | $1.1B | $168.0M | $916.0M | 19.8% |
| 2024-12-31 | $4.2B | $777.0M | $83.0M | $694.0M | 16.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 118.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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.
Higher Operating Cash Flow
Operating cash flow increased compared to the same quarter last year, while revenue also rose, leading to a higher free cash flow margin. The filing stated that net sales grew versus the prior year, with underlying sales also higher.
Free cash flow margin improved from the year-ago quarter, reflecting stronger cash generation relative to sales.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter but higher than a year ago. Operating cash flow increased year-over-year, while capital expenditure remained below the prior quarter level, resulting in free cash flow that was higher than the year-ago period but lower than the previous quarter. The free cash flow margin reflected this mixed trend.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, all these metrics were higher, with the free cash flow margin showing the largest relative improvement.
Monitor the relationship between operating cash flow and revenue in upcoming quarters, as the sequential decline in free cash flow margin warrants attention.