Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue held steady while free cash flow improved, driven by higher operating cash flow and lower capital expenditure. Free cash flow margin strengthened compared to both the prior quarter and the same quarter last year.
- Operating cash flow rose relative to revenue, and with capital expenditure declining, free cash flow and free cash flow margin both increased compared to the preceding quarter and the year-earlier period.
- Compared to the immediate prior quarter, operating cash flow was higher and capital expenditure was lower, leading to improved free cash flow and free cash flow margin. Versus the same quarter one year earlier, all metrics were stronger except capital expenditure, which showed mixed movement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$586.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$458.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$706.5M
Cash generated by operations before capital spending.
CapEx
$247.9M
Capital spending and related asset purchases.
FCF margin
22.5%
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 | $1.9B | $228.3M | $435.5M | -$207.2M | -10.7% |
| 2024-03-31 | $1.9B | $265.4M | $241.9M | $23.5M | 1.2% |
| 2024-06-30 | $2.0B | $620.5M | $309.4M | $311.1M | 15.5% |
| 2024-09-30 | $2.0B | $706.5M | $247.9M | $458.6M | 22.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher operating cash flow
Operating cash flow was the strongest observable driver, increasing relative to both the immediate prior quarter and the same quarter last year, while revenue was stable.
The rise in operating cash flow directly lifted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to revenue, and with capital expenditure declining, free cash flow and free cash flow margin both increased compared to the preceding quarter and the year-earlier period.
Compared to the immediate prior quarter, operating cash flow was higher and capital expenditure was lower, leading to improved free cash flow and free cash flow margin. Versus the same quarter one year earlier, all metrics were stronger except capital expenditure, which showed mixed movement.
Monitor the trajectory of capital expenditure, which shifted lower this quarter from both the prior quarter and the year-ago period.