Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved significantly compared to both the preceding quarter and the same quarter last year, driven by higher operating cash flow. Revenue was lower than the prior quarter but higher than a year ago, while capital expenditure decreased year over year.
- Operating cash flow rose relative to both prior periods, and with capital expenditure remaining stable sequentially and lower year over year, free cash flow increased. The free cash flow margin expanded, indicating a higher proportion of revenue converted to free cash flow.
- Compared to the preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, resulting in an improved margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower, leading to a stronger margin.
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
$807.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$941.6M
Cash generated by operations before capital spending.
CapEx
$134.5M
Capital spending and related asset purchases.
FCF margin
28.0%
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 | $3.3B | $569.1M | $213.3M | $355.8M | 10.9% |
| 2024-06-30 | $2.1B | $325.6M | $130.2M | $195.5M | 9.4% |
| 2024-09-29 | $3.0B | $695.3M | $128.0M | $567.3M | 19.0% |
| 2024-12-31 | $2.9B | $941.6M | $134.5M | $807.1M | 28.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | 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.
Operating Cash Flow Strength
Operating cash flow increased compared to both the preceding quarter and the same quarter last year, providing the primary lift to free cash flow.
The free cash flow margin expanded, reflecting improved cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to both prior periods, and with capital expenditure remaining stable sequentially and lower year over year, free cash flow increased. The free cash flow margin expanded, indicating a higher proportion of revenue converted to free cash flow.
Compared to the preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, resulting in an improved margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower, leading to a stronger margin.
Monitor the trend in capital expenditure, as it decreased sharply from a year ago but edged up from the prior quarter.