Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially and year over year, but free cash flow margin narrowed sharply from the prior quarter as operating cash flow declined. Compared with the same quarter one year earlier, free cash flow turned positive from negative.
- Operating cash flow was significantly lower than revenue, resulting in a low free cash flow margin despite moderate capital expenditure. The conversion of revenue into free cash flow weakened substantially from the preceding quarter.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow were much lower, and the free cash flow margin contracted sharply. Versus the same quarter one year earlier, all metrics improved: revenue, operating cash flow, and free cash flow turned from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$94.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$158.0M
Cash generated by operations before capital spending.
CapEx
$64.0M
Capital spending and related asset purchases.
FCF margin
2.6%
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 | $4.2B | -$536.0M | $79.0M | -$615.0M | -14.5% |
| 2024-03-31 | $3.4B | $1.5B | $83.0M | $1.4B | 40.4% |
| 2024-06-30 | $3.1B | $899.0M | $112.0M | $787.0M | 25.5% |
| 2024-09-30 | $3.6B | $158.0M | $64.0M | $94.0M | 2.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 11.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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.
Operating Cash Flow Volatility
Free cash flow margin dropped sharply from the prior quarter despite higher revenue, driven by a large decrease in operating cash flow. Capital expenditure was lower in absolute terms but had a limited offsetting effect.
The decline in operating cash flow is the primary factor behind the weakened cash conversion, warranting close attention in upcoming quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was significantly lower than revenue, resulting in a low free cash flow margin despite moderate capital expenditure. The conversion of revenue into free cash flow weakened substantially from the preceding quarter.
Compared with the immediately preceding quarter, operating cash flow and free cash flow were much lower, and the free cash flow margin contracted sharply. Versus the same quarter one year earlier, all metrics improved: revenue, operating cash flow, and free cash flow turned from negative to positive.
Monitor whether operating cash flow can sustain or improve from the current level, given the significant sequential decline.