Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased sequentially and significantly year over year, driven by higher operating cash flow. The free cash flow margin improved as operating cash flow rose while revenue remained stable or declined.
- Revenue was stable sequentially but lower year over year. Operating cash flow improved in both comparisons, and capital expenditure decreased slightly from the prior quarter, leading to higher free cash flow and an expanded margin. The company's operating leverage, where many costs do not vary directly with transaction volume, supported the improvement in cash conversion.
- Compared to the prior quarter, revenue was flat while operating cash flow increased and capital expenditure decreased, resulting in higher free cash flow and margin. Compared to the same quarter last year, revenue was lower but operating cash flow was substantially higher, leading to a much improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$669.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$835.7M
Cash generated by operations before capital spending.
CapEx
$166.3M
Capital spending and related asset purchases.
FCF margin
33.5%
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 | $159.2M | $958.5M | $157.3M | $801.2M | 503.3% |
| 2024-03-31 | $2.4B | $529.6M | $145.4M | $384.1M | 15.9% |
| 2024-06-30 | $2.0B | $808.8M | $179.2M | $629.6M | 31.9% |
| 2024-09-30 | $2.0B | $835.7M | $166.3M | $669.5M | 33.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 212.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.9B | 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 Growth
Operating cash flow rose both sequentially and year over year, despite revenue being flat or lower. This increase was the primary factor behind the free cash flow improvement.
The stronger operating cash flow allowed the company to generate higher free cash flow and expand its free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially but lower year over year. Operating cash flow improved in both comparisons, and capital expenditure decreased slightly from the prior quarter, leading to higher free cash flow and an expanded margin. The company's operating leverage, where many costs do not vary directly with transaction volume, supported the improvement in cash conversion.
Compared to the prior quarter, revenue was flat while operating cash flow increased and capital expenditure decreased, resulting in higher free cash flow and margin. Compared to the same quarter last year, revenue was lower but operating cash flow was substantially higher, leading to a much improved free cash flow margin.
Monitor transaction volume trends, as the company's revenues are tied to the volume of payment transactions processed, which directly impacts cash generation.