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 but lower than the same quarter last year. Free cash flow and free cash flow margin weakened significantly from the prior quarter and were also lower than a year ago.
- Operating cash flow was substantially lower than the prior quarter and also lower than a year ago, while capital expenditure decreased moderately. The resulting free cash flow and free cash flow margin were much lower than both comparison periods, indicating a weaker cash conversion from revenue.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both declined sharply, and free cash flow margin contracted. Versus the same quarter one year earlier, revenue was lower, operating cash flow was lower, and free cash flow was lower, though capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$301.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$72.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$312.9M
Cash generated by operations before capital spending.
CapEx
$240.8M
Capital spending and related asset purchases.
FCF margin
2.6%
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 | $3.1B | $538.1M | $358.9M | $179.2M | 5.7% |
| 2024-03-31 | $2.7B | -$80.0M | $383.0M | -$463.0M | -17.3% |
| 2024-06-30 | $2.8B | $847.0M | $333.9M | $513.1M | 18.2% |
| 2024-09-30 | $2.8B | $312.9M | $240.8M | $72.1M | 2.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 was substantially lower than both the prior quarter and the year-ago quarter, driving the reduction in free cash flow despite lower capital expenditure.
The lower operating cash flow was the strongest observable driver of the weakened free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially lower than the prior quarter and also lower than a year ago, while capital expenditure decreased moderately. The resulting free cash flow and free cash flow margin were much lower than both comparison periods, indicating a weaker cash conversion from revenue.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both declined sharply, and free cash flow margin contracted. Versus the same quarter one year earlier, revenue was lower, operating cash flow was lower, and free cash flow was lower, though capital expenditure was also lower.
Monitor the trajectory of operating cash flow, as it was the primary factor behind the decline in free cash flow this quarter.