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 same quarter last year. Free cash flow and free cash flow margin were lower than both comparable periods.
- Operating cash flow was lower than the prior quarter and significantly lower than the same quarter last year, while capital expenditure also decreased. The resulting free cash flow margin weakened sequentially and year-over-year, indicating a lower proportion of revenue converted to free cash flow.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$309.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$316.9M
Cash generated by operations before capital spending.
CapEx
$7.0M
Capital spending and related asset purchases.
FCF margin
19.5%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $1.5B | -$54.4M | $21.0M | -$75.4M | -5.1% |
| 2024-06-30 | $1.5B | $489.1M | $26.7M | $462.4M | 31.2% |
| 2024-09-30 | $1.5B | $438.4M | $28.4M | $410.0M | 27.1% |
| 2024-12-31 | $1.6B | $316.9M | $7.0M | $309.9M | 19.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 129.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | $95.9M | 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
The strongest observable driver was the decline in operating cash flow, which fell from the prior quarter and from the year-ago quarter, even as revenue increased. This directly reduced free cash flow and margin.
Lower operating cash flow was the primary factor behind the weakened free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and significantly lower than the same quarter last year, while capital expenditure also decreased. The resulting free cash flow margin weakened sequentially and year-over-year, indicating a lower proportion of revenue converted to free cash flow.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trend in operating cash flow relative to revenue, as it declined despite higher revenue in the current quarter.