Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both decreased from the prior quarter but increased from the same quarter a year ago. Free cash flow margin weakened slightly versus the prior quarter but improved compared with the same quarter last year.
- Operating cash flow as a proportion of revenue was lower than the prior quarter and higher than the year-ago quarter. Capital expenditure increased relative to both the prior quarter and the same quarter a year earlier, resulting in free cash flow and free cash flow margin that declined from the prior quarter but rose versus the year-ago quarter.
- Compared with the prior quarter, revenue and operating cash flow were lower, while capital expenditure was higher, leading to a lower free cash flow margin. Relative to the same quarter one year ago, revenue, operating cash flow, and free cash flow margin were all higher, though capital expenditure also increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$486.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$146.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$193.5M
Cash generated by operations before capital spending.
CapEx
$46.6M
Capital spending and related asset purchases.
FCF margin
15.9%
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 | $880.7M | $87.2M | $22.4M | $64.7M | 7.4% |
| 2024-06-30 | $990.4M | $131.4M | $28.0M | $103.4M | 10.4% |
| 2024-09-30 | $999.9M | $199.2M | $27.7M | $171.5M | 17.1% |
| 2024-12-31 | $924.1M | $193.5M | $46.6M | $146.8M | 15.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | 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.
Year-over-year cash flow strength
Operating cash flow and free cash flow increased from the same quarter last year, with free cash flow margin also improving, driven by higher revenue and a larger proportion of operating cash flow relative to revenue compared to the year-ago period.
The year-over-year improvement in free cash flow margin indicates a stronger cash conversion compared to the same period last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter and higher than the year-ago quarter. Capital expenditure increased relative to both the prior quarter and the same quarter a year earlier, resulting in free cash flow and free cash flow margin that declined from the prior quarter but rose versus the year-ago quarter.
Compared with the prior quarter, revenue and operating cash flow were lower, while capital expenditure was higher, leading to a lower free cash flow margin. Relative to the same quarter one year ago, revenue, operating cash flow, and free cash flow margin were all higher, though capital expenditure also increased.
Monitor the trend in capital expenditure, which rose sequentially and year-over-year, as it directly affected free cash flow conversion.