Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable sequentially despite lower revenue, as operating cash flow and capital expenditure both decreased. Compared to the same quarter last year, free cash flow was lower due to a significant decline in operating cash flow.
- Revenue was lower than operating cash flow, resulting in a free cash flow margin above one hundred percent. Capital expenditure consumed a portion of operating cash flow, leaving free cash flow positive.
- Compared to the prior quarter, revenue and operating cash flow were slightly lower, while capital expenditure also decreased, leading to nearly unchanged free cash flow. Versus the same quarter a year ago, revenue was higher but operating cash flow was substantially lower, causing free cash flow to decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$794.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$934.0M
Cash generated by operations before capital spending.
CapEx
$140.0M
Capital spending and related asset purchases.
FCF margin
116.3%
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 | $700.0M | $477.0M | $223.0M | $254.0M | 36.3% |
| 2024-03-31 | $710.0M | $198.0M | $159.0M | $39.0M | 5.5% |
| 2024-06-30 | $711.0M | $952.0M | $159.0M | $793.0M | 111.5% |
| 2024-09-30 | $683.0M | $934.0M | $140.0M | $794.0M | 116.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 198.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.5% | 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 was the strongest observable driver, as it decreased from both the prior quarter and the same quarter last year, directly impacting free cash flow.
The decline in operating cash flow was the primary factor behind the year-over-year reduction in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than operating cash flow, resulting in a free cash flow margin above one hundred percent. Capital expenditure consumed a portion of operating cash flow, leaving free cash flow positive.
Compared to the prior quarter, revenue and operating cash flow were slightly lower, while capital expenditure also decreased, leading to nearly unchanged free cash flow. Versus the same quarter a year ago, revenue was higher but operating cash flow was substantially lower, causing free cash flow to decline.
Monitor the trend in operating cash flow, which declined both sequentially and year-over-year.