Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter one year earlier, but operating cash flow, free cash flow, and free cash flow margin all weakened compared to those periods. Capital expenditure increased relative to both comparison periods.
- Cash conversion weakened as revenue grew while operating cash flow and free cash flow declined, leading to a lower free cash flow margin. Capital expenditure consumed a larger share of operating cash flow compared to earlier periods.
- Compared to the preceding quarter, revenue improved but operating cash flow, free cash flow, and margin were lower. Versus the same quarter one year earlier, all cash flow metrics were weaker despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$590.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$77.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$90.0M
Cash generated by operations before capital spending.
CapEx
$12.3M
Capital spending and related asset purchases.
FCF margin
2.6%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $2.3B | $158.4M | $10.7M | $147.6M | 6.5% |
| 2024-03-31 | $2.2B | $256.9M | $10.2M | $246.7M | 11.2% |
| 2024-06-30 | $2.4B | $126.8M | $7.9M | $118.8M | 4.9% |
| 2024-09-30 | $3.0B | $90.0M | $12.3M | $77.7M | 2.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 33.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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.
Revenue growth vs. cash flow decline
Revenue increased while operating cash flow and free cash flow decreased compared to both the preceding quarter and the same quarter last year. This divergence resulted in a materially lower free cash flow margin.
If the negative gap between revenue growth and cash generation persists, free cash flow margin may remain compressed.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as revenue grew while operating cash flow and free cash flow declined, leading to a lower free cash flow margin. Capital expenditure consumed a larger share of operating cash flow compared to earlier periods.
Compared to the preceding quarter, revenue improved but operating cash flow, free cash flow, and margin were lower. Versus the same quarter one year earlier, all cash flow metrics were weaker despite higher revenue.
Monitor the trend of free cash flow margin, which has declined from both the prior quarter and the year-ago quarter.