Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved from the prior quarter but decreased compared to the same period last year. The sequential improvement was driven by higher operating cash flow with capital spending remaining lower than both comparable periods.
- Free cash flow margin improved sequentially as operating cash flow increased while capital expenditure declined. The margin remained below the year-ago level due to lower operating cash flow despite higher revenue.
- Compared to the preceding quarter, free cash flow and margin improved meaningfully, benefiting from stronger operating cash flow and slightly reduced capital spending. Compared to the same quarter one year earlier, both free cash flow and margin were lower, as operating cash flow weakened while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$901.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$358.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$484.3M
Cash generated by operations before capital spending.
CapEx
$126.3M
Capital spending and related asset purchases.
FCF margin
6.0%
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 | $5.6B | $353.2M | $162.8M | $190.3M | 3.4% |
| 2024-03-31 | $5.8B | $318.3M | $115.7M | $202.6M | 3.5% |
| 2024-06-30 | $6.0B | $293.6M | $143.6M | $150.1M | 2.5% |
| 2024-09-30 | $6.0B | $484.3M | $126.3M | $358.0M | 6.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 158.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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.
Improved Operating Cash Flow
Operating cash flow increased from the prior quarter, driving a higher free cash flow and margin. This improvement was supported by capital expenditure that was lower than both the prior quarter and the year-ago quarter.
The stronger operating cash flow enhanced the company's cash generation from core operations, contributing to a more favorable cash conversion in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow margin improved sequentially as operating cash flow increased while capital expenditure declined. The margin remained below the year-ago level due to lower operating cash flow despite higher revenue.
Compared to the preceding quarter, free cash flow and margin improved meaningfully, benefiting from stronger operating cash flow and slightly reduced capital spending. Compared to the same quarter one year earlier, both free cash flow and margin were lower, as operating cash flow weakened while revenue was higher.
The planned non-cash pension settlement charge expected in the coming year, as disclosed in the liquidity and capital resources section, is a concrete item to monitor for future cash flow impacts.