Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter, while operating cash flow and free cash flow improved. Free cash flow margin also increased sequentially, but remained below the year-ago level.
- Operating cash flow increased relative to the prior quarter, despite similar revenue. Capital expenditure also rose, but the increase in operating cash flow more than offset the higher spending, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and margin improved. Compared to the same quarter one year earlier, free cash flow and margin were lower, even though revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$925.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$242.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$345.0M
Cash generated by operations before capital spending.
CapEx
$103.0M
Capital spending and related asset purchases.
FCF margin
8.3%
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 | $2.7B | $660.0M | $113.0M | $547.0M | 20.2% |
| 2024-03-31 | $2.9B | $99.0M | $118.0M | -$19.0M | -0.7% |
| 2024-06-30 | $2.9B | $237.0M | $82.0M | $155.0M | 5.4% |
| 2024-09-30 | $2.9B | $345.0M | $103.0M | $242.0M | 8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 417.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.5B | 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 increased significantly from the prior quarter, driving a similar improvement in free cash flow. This occurred while revenue remained stable.
The higher operating cash flow was the primary factor behind the sequential increase in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to the prior quarter, despite similar revenue. Capital expenditure also rose, but the increase in operating cash flow more than offset the higher spending, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and margin improved. Compared to the same quarter one year earlier, free cash flow and margin were lower, even though revenue was higher.
Monitor the trend in operating cash flow, as it declined year over year despite revenue growth.