Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter one year earlier. However, free cash flow and free cash flow margin were lower than both periods due to higher capital expenditure and a year-over-year decline in operating cash flow.
- Cash conversion weakened as revenue grew but operating cash flow did not keep pace, and capital expenditure increased, resulting in lower free cash flow and margin.
- Compared to the preceding quarter, revenue and operating cash flow improved, but higher capital expenditure reduced free cash flow. Compared to the same quarter one year earlier, revenue was higher but operating cash flow was lower, and capital expenditure was higher, leading to lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$864.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$224.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$266.2M
Cash generated by operations before capital spending.
CapEx
$41.3M
Capital spending and related asset purchases.
FCF margin
21.5%
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 | $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% |
| 2024-12-31 | $1.0B | $266.2M | $41.3M | $224.9M | 21.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 89.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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.
Capital Expenditure Increase
Capital expenditure rose compared to both the prior quarter and the same quarter one year earlier, consuming a larger share of operating cash flow.
This increase was the primary factor behind the decline in free cash flow and free cash flow margin despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as revenue grew but operating cash flow did not keep pace, and capital expenditure increased, resulting in lower free cash flow and margin.
Compared to the preceding quarter, revenue and operating cash flow improved, but higher capital expenditure reduced free cash flow. Compared to the same quarter one year earlier, revenue was higher but operating cash flow was lower, and capital expenditure was higher, leading to lower free cash flow and margin.
Monitor capital expenditure levels, as they have increased relative to both prior periods and are a key factor in free cash flow generation.