Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow improved compared to the prior quarter, while free cash flow margin strengthened. However, free cash flow was lower than the same quarter one year earlier due to higher capital expenditure.
- Operating cash flow as a share of revenue increased, and after deducting capital expenditure, free cash flow margin improved sequentially but declined compared to the same quarter one year earlier.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but capital expenditure was higher and free cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$977.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$378.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$480.0M
Cash generated by operations before capital spending.
CapEx
$102.0M
Capital spending and related asset purchases.
FCF margin
20.0%
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 | $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% |
| 2024-12-31 | $1.9B | $480.0M | $102.0M | $378.0M | 20.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.8B | 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 Improvement
Operating cash flow rose significantly from the prior quarter, more than offsetting the increase in capital expenditure. This was the primary factor behind the sequential improvement in free cash flow.
The higher operating cash flow drove the free cash flow margin higher sequentially, despite increased capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue increased, and after deducting capital expenditure, free cash flow margin improved sequentially but declined compared to the same quarter one year earlier.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but capital expenditure was higher and free cash flow and free cash flow margin were lower.
Monitor the trend in capital expenditure, as it was higher than both the prior quarter and the year-ago quarter, reducing free cash flow relative to the prior year.