Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow margin improved compared to both the prior quarter and the same quarter one year earlier, driven by a higher operating cash flow relative to revenue. Capital expenditure remained stable, while operating cash flow increased significantly.
- Revenue was stable compared to the prior quarter, but operating cash flow was substantially higher, resulting in a stronger cash conversion. The free cash flow margin was higher than both the previous quarter and the year-ago quarter, reflecting improved efficiency in converting revenue into free cash flow.
- Compared to the preceding quarter, operating cash flow and free cash flow were higher, while revenue was unchanged. Versus the same quarter one year earlier, revenue was slightly higher, but operating cash flow and free cash flow improved more significantly, leading to a higher free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$691.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$410.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$452.1M
Cash generated by operations before capital spending.
CapEx
$41.2M
Capital spending and related asset purchases.
FCF margin
27.4%
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 | $1.2B | $306.3M | $125.2M | $181.1M | 15.7% |
| 2024-03-31 | $1.0B | -$22.8M | $29.5M | -$52.3M | -5.0% |
| 2024-06-30 | $1.5B | $184.0M | $32.7M | $151.3M | 10.4% |
| 2024-09-30 | $1.5B | $452.1M | $41.2M | $410.9M | 27.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 171.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | 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.
Strong Operating Cash Flow
The quarter's operating cash flow was higher than the prior quarter and the year-ago period, while revenue was relatively stable, indicating a more efficient cash generation from sales.
The improved cash conversion drove a higher free cash flow margin, strengthening the company's cash position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, but operating cash flow was substantially higher, resulting in a stronger cash conversion. The free cash flow margin was higher than both the previous quarter and the year-ago quarter, reflecting improved efficiency in converting revenue into free cash flow.
Compared to the preceding quarter, operating cash flow and free cash flow were higher, while revenue was unchanged. Versus the same quarter one year earlier, revenue was slightly higher, but operating cash flow and free cash flow improved more significantly, leading to a higher free cash flow margin.
Monitor whether the elevated operating cash flow level can be sustained given the seasonal patterns noted in the filing context.