Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus the prior quarter, driven by higher operating cash flow despite a slight decline in capital expenditure. Compared to the same quarter last year, free cash flow also increased, supported by stronger operating cash generation.
- Revenue was stable relative to both the prior quarter and the year-ago quarter. Operating cash flow rose substantially from the prior quarter and was higher than the year-ago quarter, leading to a higher free cash flow margin compared to both periods.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were also higher, with operating cash flow improving while capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$571.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$618.4M
Cash generated by operations before capital spending.
CapEx
$47.0M
Capital spending and related asset purchases.
FCF margin
30.4%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $1.7B | $434.3M | $111.2M | $323.1M | 18.7% |
| 2024-03-31 | $1.9B | $412.1M | $66.0M | $346.1M | 18.2% |
| 2024-06-30 | $1.9B | $436.3M | $59.8M | $376.5M | 19.8% |
| 2024-09-30 | $1.9B | $618.4M | $47.0M | $571.4M | 30.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 154.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $876.5M | 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, increasing from both the prior quarter and the year-ago quarter, directly lifting free cash flow.
Higher operating cash flow was the primary factor behind the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to both the prior quarter and the year-ago quarter. Operating cash flow rose substantially from the prior quarter and was higher than the year-ago quarter, leading to a higher free cash flow margin compared to both periods.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were also higher, with operating cash flow improving while capital expenditure increased.
Monitor the trend in capital expenditure, which was higher than the year-ago quarter but lower than the prior quarter.