Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue edged higher relative to both the prior quarter and the same quarter last year. Free cash flow improved year-over-year but declined sequentially, with the margin following a similar pattern.
- Revenue was higher than in both comparison periods. Operating cash flow strengthened versus the prior year but weakened from the preceding quarter. Capital expenditure increased compared to both earlier periods, partly offsetting the operating cash flow movement. As a result, free cash flow and its margin were higher year-over-year but lower sequentially.
- Compared to the immediately preceding quarter, revenue was higher while operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Versus the same quarter one year earlier, revenue was higher and both operating cash flow and free cash flow improved, with the margin also strengthening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$311.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$340.6M
Cash generated by operations before capital spending.
CapEx
$29.3M
Capital spending and related asset purchases.
FCF margin
21.4%
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 | $391.4M | $13.1M | $378.3M | 26.7% |
| 2024-03-31 | $1.4B | $350.8M | $9.1M | $341.7M | 24.1% |
| 2024-06-30 | $1.4B | $374.1M | $17.6M | $356.5M | 24.8% |
| 2024-09-30 | $1.5B | $340.6M | $29.3M | $311.3M | 21.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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.
Year-over-year free cash flow improvement
Free cash flow increased compared to the same quarter last year, supported by higher operating cash flow even as capital spending rose.
This reflects stronger cash generation relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than in both comparison periods. Operating cash flow strengthened versus the prior year but weakened from the preceding quarter. Capital expenditure increased compared to both earlier periods, partly offsetting the operating cash flow movement. As a result, free cash flow and its margin were higher year-over-year but lower sequentially.
Compared to the immediately preceding quarter, revenue was higher while operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Versus the same quarter one year earlier, revenue was higher and both operating cash flow and free cash flow improved, with the margin also strengthening.
Monitor the trend in capital expenditure given its increase in both the sequential and year-over-year comparisons.