Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter but operating cash flow improved, leading to higher free cash flow and an improved margin. Compared to the same quarter last year, revenue was higher but free cash flow was lower as capital expenditure increased.
- Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin improved sequentially.
- Sequentially, revenue decreased while operating cash flow increased, resulting in higher free cash flow and margin. Year over year, revenue increased but free cash flow declined due to higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$706.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$880.0M
Cash generated by operations before capital spending.
CapEx
$174.0M
Capital spending and related asset purchases.
FCF margin
11.3%
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 | $6.1B | $751.0M | $134.0M | $617.0M | 10.1% |
| 2024-03-31 | $6.0B | $779.0M | $109.0M | $670.0M | 11.2% |
| 2024-06-30 | $6.4B | $772.0M | $125.0M | $647.0M | 10.0% |
| 2024-09-30 | $6.3B | $880.0M | $174.0M | $706.0M | 11.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $338.0M | 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 Improvement
Operating cash flow increased sequentially despite lower revenue, contributing to higher free cash flow and margin.
This improvement was the key factor behind the sequential increase in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin improved sequentially.
Sequentially, revenue decreased while operating cash flow increased, resulting in higher free cash flow and margin. Year over year, revenue increased but free cash flow declined due to higher capital expenditure.
Monitor capital expenditure trends as they have increased both sequentially and year over year, impacting free cash flow.