Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow were lower than the prior quarter but higher than the same quarter last year. The free cash flow margin improved compared to the same quarter one year earlier despite a decline in revenue.
- Revenue was lower than both the prior quarter and the same quarter one year earlier. Operating cash flow and free cash flow were lower sequentially but higher on a year-over-year basis. Capital expenditure remained stable. The free cash flow margin weakened from the prior quarter but improved from the same quarter last year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were lower, while capital expenditure was stable. Compared to the same quarter one year earlier, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$798.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$958.0M
Cash generated by operations before capital spending.
CapEx
$160.0M
Capital spending and related asset purchases.
FCF margin
19.3%
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 | $1.7B | $1.2B | $217.0M | $998.0M | 59.2% |
| 2024-03-31 | $4.3B | $438.0M | $194.0M | $244.0M | 5.6% |
| 2024-06-30 | $4.2B | $1.0B | $158.0M | $863.0M | 20.4% |
| 2024-09-30 | $4.1B | $958.0M | $160.0M | $798.0M | 19.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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.
Improved cash conversion efficiency
Free cash flow margin expanded compared to the same quarter one year earlier, supported by higher operating cash flow relative to revenue.
This helped offset the decline in revenue and maintain free cash flow growth compared to the same quarter one year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the same quarter one year earlier. Operating cash flow and free cash flow were lower sequentially but higher on a year-over-year basis. Capital expenditure remained stable. The free cash flow margin weakened from the prior quarter but improved from the same quarter last year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were lower, while capital expenditure was stable. Compared to the same quarter one year earlier, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were higher.
The company's announced transformation initiative, which includes optimizing margin structure, may affect future cash conversion trends.