Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year, but free cash flow margin narrowed as operating cash flow declined sequentially and capital expenditure rose. The year-over-year improvement in free cash flow was outpaced by revenue growth, resulting in a lower margin.
- Operating cash flow as a proportion of revenue weakened from the prior quarter but improved from a year ago, while capital expenditure consumed a larger share of cash flow sequentially. The resulting free cash flow margin fell from both comparison periods, reflecting a less efficient cash conversion during the quarter.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow were lower despite higher revenue, while capital expenditure increased. Versus the same quarter one year earlier, all cash flow metrics improved, but the free cash flow margin was slightly lower due to a greater rise in revenue relative to free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$738.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$169.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$210.5M
Cash generated by operations before capital spending.
CapEx
$40.7M
Capital spending and related asset purchases.
FCF margin
9.1%
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 | $1.5B | $146.6M | $25.0M | $121.6M | 7.9% |
| 2024-06-30 | $1.8B | $189.9M | $23.4M | $166.5M | 9.2% |
| 2024-09-30 | $1.8B | $302.2M | $22.1M | $280.1M | 15.5% |
| 2024-12-31 | $1.9B | $210.5M | $40.7M | $169.8M | 9.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $481.6M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weakening Cash Conversion Despite Revenue Growth
Revenue increased from both prior periods, yet operating cash flow declined sequentially and capital expenditure grew, causing free cash flow margin to contract. This indicates that revenue growth did not translate proportionally into cash flow, a pattern to watch.
If the pattern of rising capital expenditure and declining operating cash flow margin continues, free cash flow may face further pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue weakened from the prior quarter but improved from a year ago, while capital expenditure consumed a larger share of cash flow sequentially. The resulting free cash flow margin fell from both comparison periods, reflecting a less efficient cash conversion during the quarter.
Compared with the immediately preceding quarter, operating cash flow and free cash flow were lower despite higher revenue, while capital expenditure increased. Versus the same quarter one year earlier, all cash flow metrics improved, but the free cash flow margin was slightly lower due to a greater rise in revenue relative to free cash flow.
Monitor the trend in capital expenditure as it rose sequentially and year-over-year, potentially affecting future free cash flow generation.