Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved compared to the prior quarter and the same quarter a year ago, resulting in a higher free cash flow margin. Revenue was lower than the prior quarter but higher than the year-ago period, while capital expenditure remained relatively stable.
- Revenue was lower than the preceding quarter, yet operating cash flow increased, indicating stronger cash conversion. Capital expenditure stayed near the prior quarter level, and free cash flow rose accordingly, lifting the free cash flow margin above both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and its margin improved, driven by higher operating cash flow despite a slight decline in revenue. Versus the same quarter one year earlier, free cash flow was also higher, while the free cash flow margin was slightly improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$808.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$232.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$262.0M
Cash generated by operations before capital spending.
CapEx
$29.3M
Capital spending and related asset purchases.
FCF margin
24.4%
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 | $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% |
| 2024-12-31 | $954.3M | $262.0M | $29.3M | $232.8M | 24.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$329.5M | 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 rose compared to both the prior quarter and the year-ago quarter, while capital expenditure was relatively stable, allowing free cash flow to increase. This improvement in cash conversion supported a higher free cash flow margin.
The stronger operating cash flow directly enhanced free cash flow and margin without requiring a reduction in capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter, yet operating cash flow increased, indicating stronger cash conversion. Capital expenditure stayed near the prior quarter level, and free cash flow rose accordingly, lifting the free cash flow margin above both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and its margin improved, driven by higher operating cash flow despite a slight decline in revenue. Versus the same quarter one year earlier, free cash flow was also higher, while the free cash flow margin was slightly improved.
Revenue declined from the prior quarter; monitor the relationship between revenue changes and operating cash flow in future periods.