Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved versus the prior quarter and the year-ago quarter. The free cash flow margin declined slightly from the prior quarter but rose compared to the same quarter last year.
- Revenue increased moderately from the prior quarter and more notably from the year-ago quarter. Operating cash flow grew roughly in line with revenue, leading to higher free cash flow. Capital expenditure rose sequentially, which modestly offset the cash conversion improvement.
- Compared with the prior quarter, revenue and operating cash flow were higher, while capital expenditure was elevated. Free cash flow was slightly higher and the margin narrowed. Versus the same quarter one year earlier, all metrics were higher, and the free cash flow margin expanded.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$416.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$430.6M
Cash generated by operations before capital spending.
CapEx
$14.2M
Capital spending and related asset purchases.
FCF margin
56.0%
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 | $680.0M | $300.1M | $4.3M | $295.9M | 43.5% |
| 2024-06-30 | $707.9M | $349.2M | $8.6M | $340.6M | 48.1% |
| 2024-09-30 | $724.7M | $421.6M | $6.6M | $415.0M | 57.3% |
| 2024-12-31 | $743.5M | $430.6M | $14.2M | $416.4M | 56.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.1B | 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, rising compared to both the prior quarter and the year-ago quarter, supporting higher free cash flow despite increased capital spending.
The increase in operating cash flow was the primary factor behind the improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased moderately from the prior quarter and more notably from the year-ago quarter. Operating cash flow grew roughly in line with revenue, leading to higher free cash flow. Capital expenditure rose sequentially, which modestly offset the cash conversion improvement.
Compared with the prior quarter, revenue and operating cash flow were higher, while capital expenditure was elevated. Free cash flow was slightly higher and the margin narrowed. Versus the same quarter one year earlier, all metrics were higher, and the free cash flow margin expanded.
Monitor the trend in capital expenditure, as it increased significantly from both the prior quarter and the year-ago quarter.