Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the immediate prior quarter and higher than the same quarter one year earlier. Free cash flow improved sequentially but weakened relative to the prior-year quarter, as operating cash flow declined in both comparisons while capital expenditure was lower than the prior quarter.
- Cash conversion reflected a mixed picture: operating cash flow was lower sequentially and year over year, yet free cash flow improved sequentially due to a notable reduction in capital expenditure. The free cash flow margin strengthened from the prior quarter but weakened compared to the same quarter last year.
- Compared to the immediately preceding quarter, revenue was stable, operating cash flow was lower, capital expenditure was lower, and free cash flow and margin were higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was slightly lower, and free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$515.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$299.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$351.8M
Cash generated by operations before capital spending.
CapEx
$51.9M
Capital spending and related asset purchases.
FCF margin
22.1%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $1.3B | $136.6M | $88.3M | $48.3M | 3.8% |
| 2024-03-31 | $1.3B | -$53.5M | $65.3M | -$118.8M | -8.9% |
| 2024-06-30 | $1.4B | $371.5M | $85.4M | $286.1M | 20.9% |
| 2024-09-30 | $1.4B | $351.8M | $51.9M | $299.9M | 22.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 9.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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.
Capital expenditure reduction
Capital expenditure was lower compared to both the prior quarter and the year-ago quarter, with the sequential decline being more pronounced. This reduction directly supported a higher free cash flow sequentially despite lower operating cash flow.
It enabled free cash flow to improve from the prior quarter, partially offsetting weaker operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion reflected a mixed picture: operating cash flow was lower sequentially and year over year, yet free cash flow improved sequentially due to a notable reduction in capital expenditure. The free cash flow margin strengthened from the prior quarter but weakened compared to the same quarter last year.
Compared to the immediately preceding quarter, revenue was stable, operating cash flow was lower, capital expenditure was lower, and free cash flow and margin were higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was slightly lower, and free cash flow and margin were lower.
Monitor whether capital expenditure remains at the reduced level seen in this quarter, as it was a key factor in the sequential free cash flow improvement.