Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the same quarter last year, but a substantial rise in capital expenditure led to a lower free cash flow margin. Free cash flow was stable year over year but declined sequentially.
- Cash conversion weakened as the free cash flow margin fell to a level below both the prior quarter and the year-ago quarter. Operating cash flow as a share of revenue improved, but capital expenditure consumed a larger portion of revenue, reducing the conversion efficiency.
- Compared to the prior quarter, free cash flow was lower with revenue and operating cash flow higher but capital expenditure substantially higher. Compared to the same quarter last year, free cash flow was similar while revenue and capital expenditure were higher, resulting in a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$354.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$203.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$686.0M
Cash generated by operations before capital spending.
CapEx
$483.0M
Capital spending and related asset purchases.
FCF margin
14.4%
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 | $1.1B | $172.0M | $200.0M | -$28.0M | -2.7% |
| 2024-06-30 | $2.0B | $1.0M | $139.0M | -$138.0M | -7.0% |
| 2024-09-30 | $1.2B | $600.0M | $283.0M | $317.0M | 25.7% |
| 2024-12-31 | $1.4B | $686.0M | $483.0M | $203.0M | 14.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 34.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose significantly compared to both the prior quarter and the same quarter last year, outpacing the growth in operating cash flow.
This higher capital spending reduced free cash flow and margin, making it a key factor to monitor.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as the free cash flow margin fell to a level below both the prior quarter and the year-ago quarter. Operating cash flow as a share of revenue improved, but capital expenditure consumed a larger portion of revenue, reducing the conversion efficiency.
Compared to the prior quarter, free cash flow was lower with revenue and operating cash flow higher but capital expenditure substantially higher. Compared to the same quarter last year, free cash flow was similar while revenue and capital expenditure were higher, resulting in a weakened margin.
Monitor the trend in capital expenditure relative to operating cash flow and revenue.