Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was lower than both the prior quarter and the same quarter last year, while revenue remained stable compared to the prior quarter and was higher than a year ago. The free cash flow margin declined from the previous periods.
- Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure increased substantially, reducing free cash flow. The free cash flow margin, while still elevated, weakened compared to both earlier periods.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by a rise in capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were also lower, although operating cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$310.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$468.4M
Cash generated by operations before capital spending.
CapEx
$158.2M
Capital spending and related asset purchases.
FCF margin
1037.8%
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 | $30.4M | $364.5M | $71.0M | $293.5M | 966.2% |
| 2024-03-31 | $30.1M | $465.6M | $35.1M | $430.5M | 1427.9% |
| 2024-06-30 | $29.9M | $545.2M | $27.6M | $517.6M | 1733.5% |
| 2024-09-30 | $29.9M | $468.4M | $158.2M | $310.1M | 1037.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 160.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 529.5% | 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 Increase
Capital expenditure rose sharply compared to the prior quarter and the year-ago quarter, outpacing the change in operating cash flow. This was the most notable change among the supplied metrics.
The higher capital expenditure reduced free cash flow and margin from prior levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure increased substantially, reducing free cash flow. The free cash flow margin, while still elevated, weakened compared to both earlier periods.
Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by a rise in capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were also lower, although operating cash flow was higher.
Monitor the level of capital expenditure, as it increased significantly and directly impacted free cash flow.