Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter after a negative result in the prior quarter, supported by higher revenue and operating cash flow. Compared to the same quarter last year, free cash flow was higher despite lower revenue, as capital expenditure was reduced.
- Revenue and operating cash flow both increased from the prior quarter, while capital expenditure remained relatively stable, leading to a positive free cash flow margin. The margin improved sharply compared to both the prior quarter and the same quarter last year.
- Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher revenue and operating cash flow with capital expenditure slightly lower. Relative to the same quarter last year, free cash flow was higher, supported by lower capital expenditure despite lower revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$253.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$124.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$422.0M
Cash generated by operations before capital spending.
CapEx
$298.0M
Capital spending and related asset purchases.
FCF margin
19.1%
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 | $1.9B | $470.0M | $379.0M | $91.0M | 4.7% |
| 2024-03-31 | $1.1B | $552.0M | $421.0M | $131.0M | 12.1% |
| 2024-06-30 | $505.0M | $209.0M | $302.0M | -$93.0M | -18.4% |
| 2024-09-30 | $648.0M | $422.0M | $298.0M | $124.0M | 19.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -108.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 46.0% | 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.
Operating cash flow improvement
Operating cash flow increased substantially from the prior quarter, while capital expenditure remained nearly unchanged, resulting in a positive swing in free cash flow.
The improvement in operating cash flow was the dominant factor in the quarter's free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased from the prior quarter, while capital expenditure remained relatively stable, leading to a positive free cash flow margin. The margin improved sharply compared to both the prior quarter and the same quarter last year.
Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher revenue and operating cash flow with capital expenditure slightly lower. Relative to the same quarter last year, free cash flow was higher, supported by lower capital expenditure despite lower revenue.
Monitor the combined company's capital expenditure and cash flow integration following the merger with Southwestern, as the current quarter reflects only legacy operations.