Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow for the current quarter improved sequentially as operating cash flow rose, but declined substantially compared to the same quarter last year due to higher capital spending and a significant drop in operating cash flow. The free cash flow margin strengthened from the prior quarter yet weakened versus the year-ago period.
- Revenue was stable sequentially, but operating cash flow increased, leading to higher free cash flow and an improved margin. Compared to a year ago, revenue was higher yet operating cash flow was much lower, causing free cash flow and margin to fall.
- Relative to the prior quarter, free cash flow and margin improved as operating cash flow strengthened. Versus the same quarter last year, free cash flow and margin weakened sharply, driven by a decline in operating cash flow and an increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$237.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$296.9M
Cash generated by operations before capital spending.
CapEx
$59.4M
Capital spending and related asset purchases.
FCF margin
12.4%
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 | $1.8B | $354.0M | $36.3M | $317.7M | 18.1% |
| 2024-03-31 | $1.9B | $335.6M | $50.8M | $284.8M | 15.0% |
| 2024-06-30 | $1.9B | $258.0M | $56.1M | $201.9M | 10.5% |
| 2024-09-30 | $1.9B | $296.9M | $59.4M | $237.5M | 12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 79.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $52.2M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Inventory Cash Swing
The primary observable driver of the year-over-year decline in operating cash flow was the change in inventory, which shifted from providing cash in the prior-year period to consuming cash in the current quarter, according to the filing context.
This inventory cash usage reduced operating cash flow and free cash flow, offsetting the benefit of higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, but operating cash flow increased, leading to higher free cash flow and an improved margin. Compared to a year ago, revenue was higher yet operating cash flow was much lower, causing free cash flow and margin to fall.
Relative to the prior quarter, free cash flow and margin improved as operating cash flow strengthened. Versus the same quarter last year, free cash flow and margin weakened sharply, driven by a decline in operating cash flow and an increase in capital expenditure.
Inventory levels should be monitored, as the swing from a source of cash a year ago to a use of cash this quarter was cited as a key factor in operating cash flow decline.