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. Operating cash flow and free cash flow declined compared to both periods, resulting in a lower free cash flow margin.
- Operating cash flow decreased relative to revenue, and although capital expenditure was also lower, the reduction in operating cash flow outweighed the savings, leading to free cash flow that was lower than both the previous quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all were lower. Relative to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and margin were lower, while capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$792.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$192.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$220.1M
Cash generated by operations before capital spending.
CapEx
$28.1M
Capital spending and related asset purchases.
FCF margin
19.7%
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 | $901.6M | $249.9M | $32.6M | $217.3M | 24.1% |
| 2024-03-31 | $964.1M | $198.6M | $30.3M | $168.3M | 17.5% |
| 2024-06-30 | $1.0B | $248.3M | $33.3M | $215.0M | 21.4% |
| 2024-09-30 | $975.5M | $220.1M | $28.1M | $192.0M | 19.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 82.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$315.3M | 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 decline
The strongest observable driver was the decline in operating cash flow, which fell from both the prior quarter and the year-ago quarter. This drove the decrease in free cash flow and margin, despite lower capital expenditure.
Free cash flow and free cash flow margin weakened compared to both the immediately preceding quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased relative to revenue, and although capital expenditure was also lower, the reduction in operating cash flow outweighed the savings, leading to free cash flow that was lower than both the previous quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all were lower. Relative to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and margin were lower, while capital expenditure was also lower.
Monitor the trend of operating cash flow, as it has weakened compared to both prior periods and is the primary factor behind the free cash flow decline.