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 was lower than the prior quarter but higher than the year-ago quarter, with the free cash flow margin narrowing from the prior quarter.
- Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. After deducting capital expenditure, free cash flow followed the same pattern, resulting in a free cash flow margin that weakened sequentially but improved year-over-year.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a lower free cash flow margin. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$757.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$849.5M
Cash generated by operations before capital spending.
CapEx
$92.3M
Capital spending and related asset purchases.
FCF margin
24.6%
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 | $2.4B | $910.0M | $71.8M | $838.2M | 35.5% |
| 2024-06-30 | $2.6B | $892.6M | $60.7M | $831.9M | 32.4% |
| 2024-09-30 | $2.8B | $995.2M | $60.4M | $934.8M | 32.9% |
| 2024-12-31 | $3.1B | $849.5M | $92.3M | $757.2M | 24.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash Conversion Efficiency
Revenue increased from the prior quarter, yet operating cash flow decreased, causing free cash flow margin to decline. This divergence between top-line growth and cash generation is the most notable observable shift.
If this pattern continues, free cash flow may not keep pace with revenue growth, potentially affecting cash available for capital allocation.
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 but higher than the year-ago quarter. After deducting capital expenditure, free cash flow followed the same pattern, resulting in a free cash flow margin that weakened sequentially but improved year-over-year.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a lower free cash flow margin. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with an improved free cash flow margin.
Monitor the relationship between revenue growth and operating cash flow, as the current quarter showed higher revenue but lower cash conversion compared to the prior quarter.