Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and cash flows declined from the prior quarter but rose compared to the same quarter last year. The free cash flow margin weakened sequentially yet strengthened year over year.
- Operating cash flow converted into free cash flow with minimal capital spending, sustaining a high conversion rate.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower and the margin weakened. Versus the same quarter one year earlier, all metrics improved and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$696.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$193.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$194.0M
Cash generated by operations before capital spending.
CapEx
$841000
Capital spending and related asset purchases.
FCF margin
43.9%
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 | $433.8M | $71.0M | $4.0M | $67.0M | 15.4% |
| 2024-06-30 | $447.8M | $213.3M | $1.7M | $211.6M | 47.2% |
| 2024-09-30 | $453.8M | $226.5M | $1.8M | $224.7M | 49.5% |
| 2024-12-31 | $440.0M | $194.0M | $841000 | $193.2M | 43.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash flow growth
Operating cash flow and free cash flow grew at a faster pace than revenue compared to the same quarter last year, lifting the free cash flow margin.
The higher margin enhances the company's ability to fund operations and investments without additional debt.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted into free cash flow with minimal capital spending, sustaining a high conversion rate.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower and the margin weakened. Versus the same quarter one year earlier, all metrics improved and the margin strengthened.
Monitor revenue direction as it decreased from the prior quarter despite a year-over-year increase.