Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and operating cash flow increased compared to both the prior quarter and the same quarter a year earlier, with the free cash flow margin also improving. Revenue growth contributed to stronger cash generation, while capital expenditure remained controlled.
- Operating cash flow was higher than both the prior quarter and the year-ago period, while capital expenditure decreased year over year, leading to a rise in free cash flow. The free cash flow margin strengthened sequentially and compared to the same quarter last year.
- Compared to the prior quarter, all key cash flow metrics improved, with operating and free cash flow reaching higher levels. Versus the same quarter one year earlier, revenue was higher, operating cash flow increased, capital expenditure was lower, and free cash flow improved.
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
$571.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$608.1M
Cash generated by operations before capital spending.
CapEx
$36.3M
Capital spending and related asset purchases.
FCF margin
37.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $1.4B | $191.7M | $26.9M | $164.8M | 11.6% |
| 2024-03-31 | $1.4B | $830.4M | $221.9M | $608.5M | 45.0% |
| 2024-06-30 | $1.4B | $342.0M | $23.1M | $318.9M | 22.2% |
| 2024-09-30 | $1.5B | $608.1M | $36.3M | $571.8M | 37.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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 Expansion
Operating cash flow improved notably from the prior quarter and was higher than the year-ago period, reflecting stronger cash conversion from revenue. The sequential increase was particularly pronounced, while the year-over-year gain was supported by revenue growth and lower capital expenditure.
Higher operating cash flow directly boosts free cash flow and underpins the company's liquidity position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both the prior quarter and the year-ago period, while capital expenditure decreased year over year, leading to a rise in free cash flow. The free cash flow margin strengthened sequentially and compared to the same quarter last year.
Compared to the prior quarter, all key cash flow metrics improved, with operating and free cash flow reaching higher levels. Versus the same quarter one year earlier, revenue was higher, operating cash flow increased, capital expenditure was lower, and free cash flow improved.
Monitor deferred revenue, as it represents a significant portion of future revenue and free cash flow according to the filing.