Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable compared to the prior quarter but lower than the same quarter last year. Revenue increased modestly, while operating cash flow and free cash flow margin both weakened relative to the year-ago period.
- Revenue was higher than both the prior quarter and the year-ago quarter, yet operating cash flow was slightly lower than the prior quarter and notably lower than the year-ago quarter. With capital expenditure remaining similar, free cash flow and free cash flow margin declined compared to the year-ago period, indicating a weaker cash conversion rate.
- Sequentially, revenue was higher but operating cash flow was slightly lower, leading to a nearly flat free cash flow and a slightly lower margin. Compared to the same quarter last year, revenue was higher, but operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$888.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$233.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$254.7M
Cash generated by operations before capital spending.
CapEx
$21.4M
Capital spending and related asset purchases.
FCF margin
24.4%
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 | $935.0M | $281.5M | $32.4M | $249.1M | 26.6% |
| 2024-03-31 | $925.9M | $190.0M | $17.4M | $172.6M | 18.6% |
| 2024-06-30 | $946.8M | $257.5M | $23.8M | $233.7M | 24.7% |
| 2024-09-30 | $954.5M | $254.7M | $21.4M | $233.2M | 24.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | 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 Efficiency
Revenue growth outpaced operating cash flow growth, resulting in a lower free cash flow margin compared to the prior year. The filing attributes the year-to-date increase in operating cash flow primarily to working capital changes.
If this pattern continues, future free cash flow generation may be constrained even if revenue grows.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, yet operating cash flow was slightly lower than the prior quarter and notably lower than the year-ago quarter. With capital expenditure remaining similar, free cash flow and free cash flow margin declined compared to the year-ago period, indicating a weaker cash conversion rate.
Sequentially, revenue was higher but operating cash flow was slightly lower, leading to a nearly flat free cash flow and a slightly lower margin. Compared to the same quarter last year, revenue was higher, but operating cash flow, free cash flow, and margin were all lower.
Monitor the trend in operating cash flow relative to revenue, as the underlying efficiency of cash generation has weakened.