Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow decreased from the prior quarter but increased from the same quarter last year. Free cash flow margin narrowed from the prior quarter yet widened from a year ago.
- Operating cash flow as a proportion of revenue was lower than the prior quarter, but higher than the prior year. Capital expenditure increased sequentially, reducing free cash flow conversion.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter one year earlier, all these metrics increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$534.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$582.0M
Cash generated by operations before capital spending.
CapEx
$48.0M
Capital spending and related asset purchases.
FCF margin
19.2%
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 | $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% |
| 2024-12-31 | $2.8B | $582.0M | $48.0M | $534.0M | 19.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | 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 Decline in Operating Cash Flow
Operating cash flow was lower than the prior quarter, while capital expenditure was higher, leading to a lower free cash flow.
The combination of lower operating cash flow and higher capital expenditure reduced free cash flow compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter, but higher than the prior year. Capital expenditure increased sequentially, reducing free cash flow conversion.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter one year earlier, all these metrics increased.
Monitor the level of capital expenditure relative to operating cash flow, as it increased from both the prior quarter and the year-ago quarter.