Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was level with the previous quarter and above the year-ago level. Operating cash flow rose sharply, driving free cash flow and its margin to higher levels compared to both the prior quarter and the same quarter last year.
- Operating cash flow of the current quarter was substantially higher than the prior quarter and the year-ago quarter. Capital expenditure remained relatively stable, so the increase in free cash flow and its margin was primarily driven by the stronger cash from operations.
- Compared to the prior quarter, free cash flow and its margin improved markedly. Versus the same quarter last year, both metrics were also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$682.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$239.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$249.7M
Cash generated by operations before capital spending.
CapEx
$10.1M
Capital spending and related asset purchases.
FCF margin
8.1%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $3.0B | $249.7M | $10.1M | $239.7M | 8.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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.
Stronger Cash from Operations
Operating cash flow increased significantly from both the prior quarter and the year-ago quarter, outpacing the change in revenue and capital spending.
This improvement was the primary factor behind the higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of the current quarter was substantially higher than the prior quarter and the year-ago quarter. Capital expenditure remained relatively stable, so the increase in free cash flow and its margin was primarily driven by the stronger cash from operations.
Compared to the prior quarter, free cash flow and its margin improved markedly. Versus the same quarter last year, both metrics were also higher.
Monitor the trend in working capital, as the company's full-year operating cash flow declined due to working capital investments to support growth in the second half.