Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined sequentially from the prior quarter but increased compared to the same quarter last year. The free cash flow margin weakened from the previous quarter while remaining slightly above the year-ago level.
- Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow decreased sequentially, and capital expenditure increased, resulting in lower free cash flow and margin compared to the prior quarter.
- Compared to the immediately preceding quarter, all cash flow metrics declined. Compared to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$162.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$244.0M
Cash generated by operations before capital spending.
CapEx
$82.0M
Capital spending and related asset purchases.
FCF margin
8.8%
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 | $1.7B | $458.0M | $55.0M | $403.0M | 23.3% |
| 2024-03-31 | $1.8B | $177.0M | $82.0M | $95.0M | 5.2% |
| 2024-06-30 | $1.9B | $397.0M | $55.0M | $342.0M | 18.2% |
| 2024-09-30 | $1.8B | $244.0M | $82.0M | $162.0M | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 48.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential drop in operating cash flow
Operating cash flow fell from the prior quarter, while capital expenditure rose, leading to a lower free cash flow. Compared to the year-ago quarter, operating cash flow was higher.
This shift reduced the free cash flow margin below the prior quarter's level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow decreased sequentially, and capital expenditure increased, resulting in lower free cash flow and margin compared to the prior quarter.
Compared to the immediately preceding quarter, all cash flow metrics declined. Compared to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and margin all improved.
Monitor the relationship between operating cash flow and capital expenditure, as the ratio changed significantly from the prior quarter.