Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than the prior quarter but higher than the same quarter last year. The free cash flow margin weakened sequentially but improved year over year.
- Revenue was slightly lower than the prior quarter, while operating cash flow decreased more sharply, leading to a lower free cash flow. Capital expenditure was higher than the prior quarter but lower than a year ago, partially offsetting the cash flow decline.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin all increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$370.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$461.7M
Cash generated by operations before capital spending.
CapEx
$91.3M
Capital spending and related asset purchases.
FCF margin
20.4%
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 | $1.9B | $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% |
| 2024-12-31 | $1.8B | $461.7M | $91.3M | $370.4M | 20.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.2B | 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 Decline
Operating cash flow decreased from the prior quarter, which was the primary factor behind the lower free cash flow. Revenue was only slightly lower, so the cash conversion weakened.
The lower operating cash flow directly reduced free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, while operating cash flow decreased more sharply, leading to a lower free cash flow. Capital expenditure was higher than the prior quarter but lower than a year ago, partially offsetting the cash flow decline.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin all increased.
Monitor the trend in capital expenditure, which increased sequentially and may affect future free cash flow conversion.