Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to the same quarter last year, though both were slightly lower than the prior quarter. Operating cash flow was the primary driver of free cash flow, while capital expenditure remained stable.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow converted into free cash flow after a modest capital expenditure, resulting in a free cash flow margin that was higher than the year-ago quarter but slightly lower than the prior quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, while the free cash flow margin weakened slightly. Compared to the same quarter last year, all metrics were higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$600.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$674.0M
Cash generated by operations before capital spending.
CapEx
$74.0M
Capital spending and related asset purchases.
FCF margin
35.9%
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 | $1.8B | $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% |
| 2024-12-31 | $1.7B | $674.0M | $74.0M | $600.0M | 35.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 151.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.0B | 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 Strength
Operating cash flow was the strongest observable driver, as it was substantially higher than the year-ago quarter and remained close to the prior quarter's level despite lower revenue.
Higher operating cash flow directly supported the improvement in free cash flow and margin compared to the year-ago 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 higher than a year ago. Operating cash flow converted into free cash flow after a modest capital expenditure, resulting in a free cash flow margin that was higher than the year-ago quarter but slightly lower than the prior quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, while the free cash flow margin weakened slightly. Compared to the same quarter last year, all metrics were higher, and the free cash flow margin improved.
Monitor whether operating cash flow can sustain its level relative to revenue in future quarters.