Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive this quarter, driving free cash flow to a healthy margin despite a modest increase in capital expenditure. Revenue improved compared to both the prior quarter and the same quarter last year.
- Revenue rose while operating cash flow shifted from negative to positive, resulting in a substantial free cash flow and a margin that moved from negative to positive. Capital expenditure increased slightly but remained low relative to operating cash flow.
- Compared to the prior quarter, operating cash flow and free cash flow improved from negative to positive, and the margin strengthened significantly. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$599.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$23.0M
Capital spending and related asset purchases.
FCF margin
380.4%
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 | $399.0M | $359.0M | $12.0M | $347.0M | 87.0% |
| 2024-06-30 | $379.0M | -$217.0M | $13.0M | -$230.0M | -60.7% |
| 2024-09-30 | $419.0M | -$1.2B | $17.0M | -$1.2B | -291.6% |
| 2024-12-31 | $448.0M | $1.7B | $23.0M | $1.7B | 380.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -698.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | 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 Reversal
Operating cash flow swung from a negative position in the prior quarter to a positive figure this quarter, which was the primary factor behind the improvement in free cash flow and margin.
This shift directly enabled a positive free cash flow and a significantly higher margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow shifted from negative to positive, resulting in a substantial free cash flow and a margin that moved from negative to positive. Capital expenditure increased slightly but remained low relative to operating cash flow.
Compared to the prior quarter, operating cash flow and free cash flow improved from negative to positive, and the margin strengthened significantly. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved, while capital expenditure was lower.
Monitor whether operating cash flow can sustain its positive level in the coming quarter.