Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Operating cash flow and free cash flow improved sequentially and year-over-year, with free cash flow margin strengthening in both comparisons.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin rose as operating cash flow grew faster than revenue, indicating improved cash conversion efficiency.
- Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter last year, all metrics were higher, with free cash flow margin showing the largest relative improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$631.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$703.0M
Cash generated by operations before capital spending.
CapEx
$72.0M
Capital spending and related asset purchases.
FCF margin
34.8%
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 | $1.5B | $477.0M | $73.0M | $404.0M | 27.3% |
| 2024-03-31 | $1.8B | $775.0M | $78.0M | $697.0M | 39.0% |
| 2024-06-30 | $1.8B | $686.0M | $93.0M | $593.0M | 32.6% |
| 2024-09-30 | $1.8B | $703.0M | $72.0M | $631.0M | 34.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 118.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | 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 Growth
Operating cash flow increased sequentially and year-over-year, outpacing revenue growth. This was the strongest observable driver of free cash flow improvement.
Higher operating cash flow directly lifted free cash flow and margin without a proportional increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin rose as operating cash flow grew faster than revenue, indicating improved cash conversion efficiency.
Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter last year, all metrics were higher, with free cash flow margin showing the largest relative improvement.
Monitor whether operating cash flow can sustain its current level relative to revenue, as it was the primary driver of free cash flow improvement.