Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased versus both the prior quarter and the same quarter last year, while operating cash flow improved substantially, leading to a higher free cash flow and an improved free cash flow margin. The quarter's cash conversion strengthened compared to the preceding period and the year-ago period.
- Revenue was higher, and operating cash flow rose significantly relative to both the prior quarter and the year-ago quarter. Capital expenditure increased modestly, but free cash flow improved markedly, resulting in a higher free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics also improved, with operating cash flow and free cash flow showing notable increases.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$645.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$705.0M
Cash generated by operations before capital spending.
CapEx
$60.0M
Capital spending and related asset purchases.
FCF margin
31.8%
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 | $1.7B | $530.0M | $39.0M | $491.0M | 29.3% |
| 2024-06-30 | $1.8B | $460.0M | $52.0M | $408.0M | 22.8% |
| 2024-09-30 | $1.9B | $244.0M | $56.0M | $188.0M | 9.9% |
| 2024-12-31 | $2.0B | $705.0M | $60.0M | $645.0M | 31.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 181.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.0B | 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 improvement
Operating cash flow increased substantially from the prior quarter and the year-ago quarter, outpacing the growth in revenue and capital expenditure. This was the strongest observable factor behind the rise in free cash flow.
The improvement in operating cash flow directly drove free cash flow higher and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, and operating cash flow rose significantly relative to both the prior quarter and the year-ago quarter. Capital expenditure increased modestly, but free cash flow improved markedly, resulting in a higher free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics also improved, with operating cash flow and free cash flow showing notable increases.
The filing discusses potential credit rating downgrade risk and leverage, which could affect funding costs and financial flexibility.