Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the year-ago quarter, while free cash flow margin weakened from both periods. Operating cash flow was lower sequentially but improved from the prior year, with capital expenditure remaining relatively stable.
- Cash conversion from revenue to free cash flow weakened in the current quarter. Revenue increased while operating cash flow decreased relative to the immediately preceding quarter, resulting in a lower free cash flow margin.
- Compared to the immediately preceding quarter, revenue rose while operating cash flow fell, and free cash flow was lower. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow was lower, as capital expenditure decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$603.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$157.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$172.6M
Cash generated by operations before capital spending.
CapEx
$15.5M
Capital spending and related asset purchases.
FCF margin
18.2%
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 | $800.5M | $156.6M | $20.0M | $136.6M | 17.1% |
| 2024-06-30 | $807.2M | $133.6M | $15.9M | $117.7M | 14.6% |
| 2024-09-30 | $798.2M | $205.3M | $13.7M | $191.6M | 24.0% |
| 2024-12-31 | $862.9M | $172.6M | $15.5M | $157.1M | 18.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | 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
Operating cash flow decreased from the prior quarter, while revenue increased. This mix drove the decline in free cash flow and margin.
The weakening in cash conversion efficiency is the most observable shift in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion from revenue to free cash flow weakened in the current quarter. Revenue increased while operating cash flow decreased relative to the immediately preceding quarter, resulting in a lower free cash flow margin.
Compared to the immediately preceding quarter, revenue rose while operating cash flow fell, and free cash flow was lower. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow was lower, as capital expenditure decreased.
Monitor operating cash flow trends given it decreased sequentially despite higher revenue.