Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both declined from the prior quarter, but free cash flow and margin improved compared to the same quarter last year. Capital expenditure was lower than both the prior quarter and the year-ago quarter.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the same quarter last year. After deducting capital expenditure, free cash flow margin weakened sequentially but strengthened year over year.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and free cash flow margin narrowed. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin expanded.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$782.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$272.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$332.4M
Cash generated by operations before capital spending.
CapEx
$60.2M
Capital spending and related asset purchases.
FCF margin
20.2%
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 | $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% |
| 2024-12-31 | $1.3B | $332.4M | $60.2M | $272.2M | 20.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | 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.
Year-over-year free cash flow improvement
Free cash flow and free cash flow margin were higher than the same quarter last year, supported by higher operating cash flow and lower capital expenditure.
This quarter's free cash flow generation was stronger than the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the same quarter last year. After deducting capital expenditure, free cash flow margin weakened sequentially but strengthened year over year.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and free cash flow margin narrowed. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin expanded.
Monitor the trend in capital expenditure, which was lower in the current quarter compared to both the prior quarter and the year-ago quarter.