Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from the prior quarter, with free cash flow margin rising as operating cash flow increased while revenue declined. Compared to the same quarter last year, both revenue and cash generation were lower.
- Revenue was lower than the prior quarter, but operating cash flow rose substantially, leading to a higher free cash flow and an improved free cash flow margin. Capital expenditure was slightly lower than the prior quarter and much lower than a year ago.
- Compared to the immediately preceding quarter, free cash flow margin strengthened as operating cash flow increased despite lower revenue. Versus the same quarter one year earlier, free cash flow margin weakened, with both revenue and operating cash flow lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$970.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$253.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$271.5M
Cash generated by operations before capital spending.
CapEx
$18.1M
Capital spending and related asset purchases.
FCF margin
24.7%
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 | $1.3B | $430.0M | $40.1M | $389.9M | 29.4% |
| 2024-06-30 | $1.2B | $377.1M | $72.9M | $304.2M | 24.5% |
| 2024-09-30 | $1.2B | $43.6M | $20.8M | $22.8M | 2.0% |
| 2024-12-31 | $1.0B | $271.5M | $18.1M | $253.4M | 24.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -472.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.2B | 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 Recovery
Operating cash flow increased significantly from the prior quarter, driving a substantial rise in free cash flow and margin, even as revenue declined. This was the strongest observable factor in the quarter's cash conversion.
The improvement in operating cash flow was the primary reason free cash flow margin rose from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, but operating cash flow rose substantially, leading to a higher free cash flow and an improved free cash flow margin. Capital expenditure was slightly lower than the prior quarter and much lower than a year ago.
Compared to the immediately preceding quarter, free cash flow margin strengthened as operating cash flow increased despite lower revenue. Versus the same quarter one year earlier, free cash flow margin weakened, with both revenue and operating cash flow lower.
Monitor the trajectory of operating cash flow relative to revenue, as the current quarter's improvement occurred on lower revenue.