Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow were lower compared to both the preceding quarter and the same quarter last year, while capital expenditure increased substantially. Free cash flow margin weakened notably due to the combination of lower operating cash flow and higher capital spending.
- Revenue was stable relative to both comparison periods. Operating cash flow decreased while capital expenditure rose, resulting in free cash flow that was lower than both the prior quarter and the year-ago quarter. The free cash flow margin declined sharply, reflecting a less efficient cash conversion from revenue.
- Compared to the immediately preceding quarter, operating cash flow decreased and capital expenditure increased, leading to lower free cash flow and a weakened margin. Versus the same quarter one year earlier, operating cash flow was higher while capital expenditure was significantly higher, resulting in lower free cash flow and a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$150.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$408.3M
Cash generated by operations before capital spending.
CapEx
$258.1M
Capital spending and related asset purchases.
FCF margin
485.0%
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 | $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% |
| 2024-12-31 | $31.0M | $408.3M | $258.1M | $150.2M | 485.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 57.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 833.4% | 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.
Higher Capital Expenditure
Capital expenditure rose substantially compared to both the preceding quarter and the same quarter last year. This was the strongest observable factor contributing to the decline in free cash flow and the weakening of free cash flow margin.
Higher capital expenditure absorbed more operating cash flow, reducing the amount available as free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to both comparison periods. Operating cash flow decreased while capital expenditure rose, resulting in free cash flow that was lower than both the prior quarter and the year-ago quarter. The free cash flow margin declined sharply, reflecting a less efficient cash conversion from revenue.
Compared to the immediately preceding quarter, operating cash flow decreased and capital expenditure increased, leading to lower free cash flow and a weakened margin. Versus the same quarter one year earlier, operating cash flow was higher while capital expenditure was significantly higher, resulting in lower free cash flow and a weakened margin.
Monitor the level of capital expenditure, as it increased markedly compared to both the prior quarter and the year-ago quarter, directly impacting free cash flow.