Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined sequentially as operating cash flow fell, despite higher revenue. Compared to the same quarter last year, free cash flow was slightly lower with a similar margin.
- Revenue grew but operating cash flow contracted sharply from the prior quarter, compressing the free cash flow margin. The conversion of revenue to cash weakened sequentially.
- Free cash flow margin weakened sequentially from the prior quarter and was marginally lower than the same quarter last year. The decline was driven primarily by lower operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$843.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$161.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$277.3M
Cash generated by operations before capital spending.
CapEx
$115.8M
Capital spending and related asset purchases.
FCF margin
4.9%
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 | $3.0B | $579.6M | $167.2M | $412.4M | 13.6% |
| 2024-03-31 | $3.2B | -$29.8M | $133.8M | -$163.6M | -5.2% |
| 2024-06-30 | $3.2B | $561.1M | $128.2M | $432.9M | 13.4% |
| 2024-09-30 | $3.3B | $277.3M | $115.8M | $161.5M | 4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | 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 decreased materially from the previous quarter, leading to lower free cash flow despite higher revenue. This was the strongest observable driver of the quarter's results.
The reduction in operating cash flow constrained free cash flow generation and compressed the margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew but operating cash flow contracted sharply from the prior quarter, compressing the free cash flow margin. The conversion of revenue to cash weakened sequentially.
Free cash flow margin weakened sequentially from the prior quarter and was marginally lower than the same quarter last year. The decline was driven primarily by lower operating cash flow.
Monitor operating cash flow trends, as the sequential drop was significant.