Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin widened significantly as revenue rose while capital expenditure increased only modestly.
- Revenue was higher, and operating cash flow grew at a faster pace, lifting free cash flow. The free cash flow margin improved as operating cash flow as a share of revenue rose, while capital expenditure consumed a smaller relative portion of cash from operations.
- Compared with the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year ago, every metric was higher, with free cash flow and margin showing the largest relative improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$645.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$581.0M
Capital spending and related asset purchases.
FCF margin
21.1%
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 | $3.1B | $673.0M | $836.0M | -$163.0M | -5.3% |
| 2024-03-31 | $3.0B | $839.0M | $557.0M | $282.0M | 9.4% |
| 2024-06-30 | $3.0B | $1.0B | $568.0M | $468.0M | 15.4% |
| 2024-09-30 | $3.1B | $1.2B | $581.0M | $645.0M | 21.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 58.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 19.0% | 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.
Operating Cash Flow Growth
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, outpacing revenue growth. This was the strongest observable driver of free cash flow improvement.
The increase in operating cash flow directly lifted free cash flow 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 grew at a faster pace, lifting free cash flow. The free cash flow margin improved as operating cash flow as a share of revenue rose, while capital expenditure consumed a smaller relative portion of cash from operations.
Compared with the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year ago, every metric was higher, with free cash flow and margin showing the largest relative improvement.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.