Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position a year ago, though the free cash flow margin was slightly lower than the previous quarter.
- Operating cash flow as a proportion of revenue improved versus the year-ago quarter, while capital expenditure was lower than the year-ago level, contributing to the positive free cash flow. The free cash flow margin, however, weakened slightly from the prior quarter.
- Compared to the prior quarter, revenue and operating cash flow were higher, but the free cash flow margin was lower. Compared to the same quarter one year earlier, all metrics improved, with free cash flow shifting from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$510.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$822.6M
Cash generated by operations before capital spending.
CapEx
$312.0M
Capital spending and related asset purchases.
FCF margin
21.2%
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 | $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% |
| 2024-12-31 | $2.4B | $822.6M | $312.0M | $510.6M | 21.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.9% | 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.
Operating Cash Flow Growth
Operating cash flow was higher than both the prior quarter and the year-ago quarter, providing the primary support for free cash flow generation.
This improvement in operating cash flow was the strongest observable driver of the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue improved versus the year-ago quarter, while capital expenditure was lower than the year-ago level, contributing to the positive free cash flow. The free cash flow margin, however, weakened slightly from the prior quarter.
Compared to the prior quarter, revenue and operating cash flow were higher, but the free cash flow margin was lower. Compared to the same quarter one year earlier, all metrics improved, with free cash flow shifting from negative to positive.
Monitor the trend in capital expenditure relative to operating cash flow, as it was a significant use of cash in the current quarter.