Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened this quarter as operating cash flow declined while capital expenditure rose, resulting in a lower margin. Revenue was stable compared to the prior quarter and higher than the same quarter last year.
- Revenue was stable sequentially, but operating cash flow decreased and capital expenditure increased, causing free cash flow and its margin to decline. Compared to the same quarter last year, revenue was higher, yet free cash flow was lower due to a larger rise in capital expenditure.
- Compared to the prior quarter, free cash flow and margin weakened as operating cash flow fell and capital expenditure rose. Versus the same quarter last year, revenue improved but free cash flow and margin declined, driven by a notable increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$642.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$102.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$167.7M
Cash generated by operations before capital spending.
CapEx
$64.8M
Capital spending and related asset purchases.
FCF margin
16.5%
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 | $457.9M | $248.1M | $16.0M | $232.1M | 50.7% |
| 2024-06-30 | $507.4M | $141.0M | $31.5M | $109.5M | 21.6% |
| 2024-09-30 | $620.1M | $231.7M | $33.8M | $197.9M | 31.9% |
| 2024-12-31 | $621.7M | $167.7M | $64.8M | $102.9M | 16.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 8.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.4% | 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.
Capital Expenditure Increase
Capital expenditure rose substantially compared to both the prior quarter and the same quarter last year, outpacing the growth in operating cash flow. This was the strongest observable driver of the decline in free cash flow.
Higher capital expenditure directly reduced free cash flow and its margin, despite stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, but operating cash flow decreased and capital expenditure increased, causing free cash flow and its margin to decline. Compared to the same quarter last year, revenue was higher, yet free cash flow was lower due to a larger rise in capital expenditure.
Compared to the prior quarter, free cash flow and margin weakened as operating cash flow fell and capital expenditure rose. Versus the same quarter last year, revenue improved but free cash flow and margin declined, driven by a notable increase in capital expenditure.
Monitor the trend in capital expenditure, as its increase this quarter was the primary factor reducing free cash flow.