Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow improved markedly relative to both periods, resulting in a significantly higher free cash flow margin.
- Operating cash flow, after deducting capital expenditure, yielded free cash flow that was higher than both the prior quarter and the year-ago quarter. The free cash flow margin improved compared with both periods.
- Compared with the prior quarter, revenue was stable while operating cash flow, free cash flow, and margin were all higher. Capital expenditure was slightly lower. Compared with the year-ago quarter, revenue was higher, operating cash flow and free cash flow were higher, capital expenditure was lower, and margin was improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$665.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$777.2M
Cash generated by operations before capital spending.
CapEx
$112.1M
Capital spending and related asset purchases.
FCF margin
20.0%
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 | $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% |
| 2024-12-31 | $3.3B | $777.2M | $112.1M | $665.1M | 20.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 463.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.8B | 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
Operating cash flow was higher than both the prior quarter and the year-ago quarter, driving the improvement in free cash flow and margin.
The higher operating cash flow strengthened free cash flow generation, supporting the company's liquidity as noted in the filing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow, after deducting capital expenditure, yielded free cash flow that was higher than both the prior quarter and the year-ago quarter. The free cash flow margin improved compared with both periods.
Compared with the prior quarter, revenue was stable while operating cash flow, free cash flow, and margin were all higher. Capital expenditure was slightly lower. Compared with the year-ago quarter, revenue was higher, operating cash flow and free cash flow were higher, capital expenditure was lower, and margin was improved.
Monitor the level of capital expenditure, which was lower relative to both the prior quarter and the year-ago quarter.