Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
- Operating cash flow was higher than the prior quarter but lower than the same quarter last year. With capital expenditure lower in both comparisons, free cash flow followed the same pattern as operating cash flow, resulting in a free cash flow margin that improved sequentially but weakened year-over-year.
- Compared to the prior quarter, revenue was slightly lower while operating cash flow and free cash flow were higher, leading to an improved margin. Compared to the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$647.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$664.0M
Cash generated by operations before capital spending.
CapEx
$17.0M
Capital spending and related asset purchases.
FCF margin
22.6%
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 | $2.6B | $465.0M | $42.0M | $423.0M | 16.2% |
| 2024-03-31 | $2.6B | $346.0M | $16.0M | $330.0M | 12.8% |
| 2024-06-30 | $3.0B | $421.0M | $15.0M | $406.0M | 13.8% |
| 2024-09-30 | $2.9B | $664.0M | $17.0M | $647.0M | 22.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 188.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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.
Sequential Cash Flow Improvement
Operating cash flow increased substantially from the prior quarter, driving a higher free cash flow despite slightly lower revenue. This was the strongest observable driver of the quarter's cash conversion performance.
The sequential improvement in operating cash flow was the primary factor behind the higher free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter but lower than the same quarter last year. With capital expenditure lower in both comparisons, free cash flow followed the same pattern as operating cash flow, resulting in a free cash flow margin that improved sequentially but weakened year-over-year.
Compared to the prior quarter, revenue was slightly lower while operating cash flow and free cash flow were higher, leading to an improved margin. Compared to the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened margin.
Monitor the relationship between revenue and operating cash flow, as operating cash flow moved opposite to revenue in both comparisons.