Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter and was higher than the same quarter a year earlier, driven by stronger operating cash generation. The free cash flow margin strengthened sequentially but remained below the year-ago level.
- Operating cash flow increased substantially from the preceding quarter, translating into a higher free cash flow margin. Capital expenditure also rose, but the growth in operating cash flow more than offset the increase.
- Compared to the preceding quarter, revenue was stable, while operating cash flow and free cash flow both improved. Relative to the year-ago quarter, revenue and free cash flow were higher, but the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$604.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$286.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$339.5M
Cash generated by operations before capital spending.
CapEx
$53.3M
Capital spending and related asset purchases.
FCF margin
23.2%
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 | $889.3M | $111.9M | $26.8M | $85.1M | 9.6% |
| 2024-06-30 | $998.2M | $77.7M | $28.0M | $49.7M | 5.0% |
| 2024-09-30 | $1.2B | $212.3M | $28.6M | $183.7M | 15.6% |
| 2024-12-31 | $1.2B | $339.5M | $53.3M | $286.1M | 23.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 244.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$990.7M | 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 Strength
Operating cash flow rose from the prior quarter and exceeded the year-ago figure, providing the main support for free cash flow improvement.
A sustained increase in operating cash flow would continue to bolster free cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially from the preceding quarter, translating into a higher free cash flow margin. Capital expenditure also rose, but the growth in operating cash flow more than offset the increase.
Compared to the preceding quarter, revenue was stable, while operating cash flow and free cash flow both improved. Relative to the year-ago quarter, revenue and free cash flow were higher, but the free cash flow margin was lower.
Monitor whether the free cash flow margin can sustain or improve relative to the year-ago level.