Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, while free cash flow and margin improved from a year ago but weakened sequentially. The quarter's cash conversion was supported by higher operating cash flow year over year, offset by a significant rise in capital expenditure.
- Operating cash flow was higher than a year earlier but lower than the prior quarter, while capital expenditure increased substantially from both comparison periods. As a result, free cash flow improved year over year but declined sequentially, and the free cash flow margin followed a similar pattern.
- Compared to the preceding quarter, revenue rose but free cash flow and margin fell due to higher capital expenditure and lower operating cash flow. Versus the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow showing strong gains.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$380.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$477.6M
Cash generated by operations before capital spending.
CapEx
$97.6M
Capital spending and related asset purchases.
FCF margin
22.9%
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 | $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% |
| 2024-12-31 | $1.7B | $477.6M | $97.6M | $380.0M | 22.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure increase
Capital expenditure rose sharply from both the prior quarter and the year-ago quarter, consuming a greater portion of operating cash flow. This was the most visible factor behind the sequential decline in free cash flow and margin.
If capital expenditure remains elevated, free cash flow may continue to face pressure unless operating cash flow grows commensurately.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than a year earlier but lower than the prior quarter, while capital expenditure increased substantially from both comparison periods. As a result, free cash flow improved year over year but declined sequentially, and the free cash flow margin followed a similar pattern.
Compared to the preceding quarter, revenue rose but free cash flow and margin fell due to higher capital expenditure and lower operating cash flow. Versus the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow showing strong gains.
Monitor the trajectory of capital expenditure and its impact on sustaining free cash flow levels.