Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased year over year while remaining relatively stable sequentially. The free cash flow margin held near the prior quarter's level, reflecting continued cash generation discipline.
- Revenue and operating cash flow both declined from the previous quarter and the year-ago period. Capital expenditure increased sequentially but remained lower than the prior year, resulting in free cash flow that was lower year over year but relatively stable compared to the prior quarter.
- Compared to the prior quarter, revenue and operating cash flow were lower, while free cash flow margin improved slightly. Versus the same quarter last year, all key metrics were lower, with the free cash flow margin showing a notable decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$907.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$351.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$407.0M
Cash generated by operations before capital spending.
CapEx
$56.0M
Capital spending and related asset purchases.
FCF margin
19.2%
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 | $1.9B | -$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% |
| 2024-12-31 | $1.8B | $407.0M | $56.0M | $351.0M | 19.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 192.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free cash flow margin stability
Despite lower revenue, the free cash flow margin held close to the prior quarter's level, indicating effective cash management. This stability occurred alongside continued shareholder returns through share repurchases and a dividend increase, as noted in the filing.
A sustained free cash flow margin supports the company's ability to fund capital allocation priorities such as dividends and share repurchases.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both declined from the previous quarter and the year-ago period. Capital expenditure increased sequentially but remained lower than the prior year, resulting in free cash flow that was lower year over year but relatively stable compared to the prior quarter.
Compared to the prior quarter, revenue and operating cash flow were lower, while free cash flow margin improved slightly. Versus the same quarter last year, all key metrics were lower, with the free cash flow margin showing a notable decline.
Monitor capital expenditure trends and the effect of the third-quarter business divestiture on future revenue and cash flow generation.