Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter a year ago, driven by higher operating cash flow and reduced capital expenditure. The free cash flow margin strengthened versus the year-ago period but remained nearly stable from the preceding quarter.
- Revenue was lower than both prior periods, yet operating cash flow increased relative to the previous quarter and was higher than the year-ago quarter. Capital expenditure declined substantially against both comparatives, amplifying free cash flow and resulting in a stronger free cash flow margin compared to last year.
- Compared to the immediately preceding quarter, revenue increased and operating cash flow improved, while capital expenditure decreased, leading to higher free cash flow. Versus the same quarter a year ago, revenue was lower but operating cash flow was higher, and the drop in capital expenditure was more pronounced, resulting in a larger free cash flow and improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$885.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$204.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$222.5M
Cash generated by operations before capital spending.
CapEx
$18.4M
Capital spending and related asset purchases.
FCF margin
15.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $1.3B | $390.7M | $24.9M | $365.8M | 28.4% |
| 2024-03-31 | $757.3M | $177.8M | $22.1M | $155.7M | 20.6% |
| 2024-06-30 | $995.3M | $187.3M | $27.4M | $159.9M | 16.1% |
| 2024-09-29 | $1.3B | $222.5M | $18.4M | $204.1M | 15.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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.
Reduced Capital Expenditure
Capital expenditure decreased versus both the prior quarter and the same quarter a year ago, lowering the cash outflow for investments and directly boosting free cash flow. This was the most observable factor in the cash conversion improvement.
Lower capital outlays enabled free cash flow to outpace operating cash flow growth, reinforcing overall cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both prior periods, yet operating cash flow increased relative to the previous quarter and was higher than the year-ago quarter. Capital expenditure declined substantially against both comparatives, amplifying free cash flow and resulting in a stronger free cash flow margin compared to last year.
Compared to the immediately preceding quarter, revenue increased and operating cash flow improved, while capital expenditure decreased, leading to higher free cash flow. Versus the same quarter a year ago, revenue was lower but operating cash flow was higher, and the drop in capital expenditure was more pronounced, resulting in a larger free cash flow and improved margin.
Monitor operating cash flow sustainability given that revenue was lower than the year-ago quarter yet cash conversion improved.