Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved, lifting free cash flow to a positive level and expanding the margin. The sequential quarter had a deficit, while the prior year also showed a positive but lower margin.
- Operating cash flow rose and capital expenditure declined, leading to a free cash flow that was positive and higher than both the prior quarter and the year‑ago quarter. The free cash flow margin widened from the same quarter last year and reversed a negative margin from the previous quarter.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, and capital expenditure was lower. Relative to the same quarter one year earlier, revenue and cash flow measures were higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$27.0M
Capital spending and related asset purchases.
FCF margin
265.4%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $336.0M | $482.0M | $32.0M | $450.0M | 133.9% |
| 2024-06-30 | $360.0M | $297.0M | $42.0M | $255.0M | 70.8% |
| 2024-09-30 | $362.0M | -$58.0M | $42.0M | -$100.0M | -27.6% |
| 2024-12-31 | $410.0M | $1.1B | $27.0M | $1.1B | 265.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 205.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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.
Operating Cash Flow Recovery
Operating cash flow turned significantly higher compared to the prior quarter, which was negative. This shift was the primary factor behind the positive free cash flow and the expansion of the free cash flow margin.
The recovery in operating cash flow drove free cash flow strongly higher and reversed the prior quarter's deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose and capital expenditure declined, leading to a free cash flow that was positive and higher than both the prior quarter and the year‑ago quarter. The free cash flow margin widened from the same quarter last year and reversed a negative margin from the previous quarter.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, and capital expenditure was lower. Relative to the same quarter one year earlier, revenue and cash flow measures were higher, while capital expenditure was lower.
Monitor whether operating cash flow can sustain its current level given the variability shown between the prior quarter and the current quarter.