Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened versus both the immediate prior quarter and the same quarter last year, driven by lower operating cash flow and higher capital expenditure. The free cash flow margin narrowed notably in both comparisons.
- Revenue was stable sequentially but higher year-over-year. Operating cash flow declined from both prior periods, while capital expenditure increased relative to the prior quarter but was slightly lower than the year-ago level. The resulting free cash flow and margin were lower in both comparisons, indicating a less efficient cash conversion.
- Compared to the prior quarter, free cash flow and margin both weakened due to a decline in operating cash flow and an increase in capital spending. Relative to the same quarter one year ago, free cash flow was lower despite higher revenue, reflecting a diminished cash conversion rate.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$608.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$817.0M
Cash generated by operations before capital spending.
CapEx
$209.0M
Capital spending and related asset purchases.
FCF margin
14.8%
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 | $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% |
| 2024-12-31 | $4.1B | $817.0M | $209.0M | $608.0M | 14.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.0% | 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 Decline
Operating cash flow decreased both sequentially and year-over-year, while capital expenditure rose relative to the prior quarter. This combination drove the reduction in free cash flow and margin.
The lower operating cash flow directly reduced free cash flow and narrowed the margin, making cash generation less robust than in prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially but higher year-over-year. Operating cash flow declined from both prior periods, while capital expenditure increased relative to the prior quarter but was slightly lower than the year-ago level. The resulting free cash flow and margin were lower in both comparisons, indicating a less efficient cash conversion.
Compared to the prior quarter, free cash flow and margin both weakened due to a decline in operating cash flow and an increase in capital spending. Relative to the same quarter one year ago, free cash flow was lower despite higher revenue, reflecting a diminished cash conversion rate.
Monitor whether operating cash flow can recover toward prior levels, as its decline was the primary factor behind the lower free cash flow.