Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and the year-ago quarter. Free cash flow improved from the prior quarter but weakened compared to the same quarter last year, driven by a lower operating cash flow.
- Operating cash flow of the current quarter was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure decreased sequentially and year-over-year, resulting in free cash flow that improved from the prior quarter but weakened from the year-ago quarter. The free cash flow margin followed the same pattern, improving sequentially but declining year-over-year.
- Compared to the immediately preceding quarter, revenue was slightly lower, operating cash flow was higher, capital expenditure was lower, and free cash flow and its margin improved. Compared to the same quarter one year earlier, revenue was stable, operating cash flow was lower, capital expenditure was lower, and free cash flow and its margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$979.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$378.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$416.0M
Cash generated by operations before capital spending.
CapEx
$38.0M
Capital spending and related asset purchases.
FCF margin
19.1%
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 | $1.9B | $485.0M | $62.0M | $423.0M | 22.5% |
| 2024-03-31 | $1.9B | -$94.0M | $31.0M | -$125.0M | -6.5% |
| 2024-06-30 | $2.1B | $346.0M | $43.0M | $303.0M | 14.5% |
| 2024-09-30 | $2.0B | $416.0M | $38.0M | $378.0M | 19.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 226.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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
The strongest observable driver is the year-over-year decline in operating cash flow, which fell while revenue remained unchanged. This directly reduced free cash flow and margin compared to the year-ago quarter.
If operating cash flow continues to weaken relative to revenue, free cash flow generation may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of the current quarter was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure decreased sequentially and year-over-year, resulting in free cash flow that improved from the prior quarter but weakened from the year-ago quarter. The free cash flow margin followed the same pattern, improving sequentially but declining year-over-year.
Compared to the immediately preceding quarter, revenue was slightly lower, operating cash flow was higher, capital expenditure was lower, and free cash flow and its margin improved. Compared to the same quarter one year earlier, revenue was stable, operating cash flow was lower, capital expenditure was lower, and free cash flow and its margin weakened.
Monitor the trend in operating cash flow, which declined year-over-year despite stable revenue.