Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior year quarter but declined from the previous quarter. Free cash flow decreased from both periods, primarily due to lower operating cash flow and higher capital expenditure.
- Cash conversion weakened as free cash flow margin contracted despite stable revenue. Operating cash flow generated less cash relative to sales, while capital expenditure increased.
- Compared to the previous quarter, both revenue and free cash flow were lower, with the free cash flow margin slightly declined. Year over year, revenue was stable but free cash flow declined significantly as operating cash flow decreased and capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$946.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$222.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$282.8M
Cash generated by operations before capital spending.
CapEx
$60.2M
Capital spending and related asset purchases.
FCF margin
12.2%
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 | $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% |
| 2024-12-31 | $1.8B | $282.8M | $60.2M | $222.6M | 12.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $55.8M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Decline
Operating cash flow decreased compared to both the prior quarter and the same quarter last year, while capital expenditure increased. This combination drove a notable reduction in free cash flow and margin.
Lower operating cash flow and higher capital expenditure may pressure future free cash flow if revenue growth does not recover.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as free cash flow margin contracted despite stable revenue. Operating cash flow generated less cash relative to sales, while capital expenditure increased.
Compared to the previous quarter, both revenue and free cash flow were lower, with the free cash flow margin slightly declined. Year over year, revenue was stable but free cash flow declined significantly as operating cash flow decreased and capital expenditure increased.
Monitor the trend of operating cash flow generation in upcoming quarters.