Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from a year ago, driven by higher operating cash flow. However, compared to the prior quarter, operating cash flow declined sharply, resulting in a lower free cash flow margin.
- Revenue was stable sequentially. Operating cash flow, after moderate capital expenditure, converted to free cash flow that produced a margin substantially higher than a year ago but lower than the prior quarter.
- Versus the prior quarter, operating cash flow and free cash flow were both lower, while capital expenditure was slightly higher. Compared to the same quarter a year earlier, revenue, operating cash flow, and free cash flow were all higher, with a notable improvement in free cash flow margin. The filing notes higher revenue and net income compared to the prior year, aligning with the increase in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$585.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$611.1M
Cash generated by operations before capital spending.
CapEx
$25.7M
Capital spending and related asset purchases.
FCF margin
48.9%
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 | $1.1B | $2.8B | $63.8M | $2.7B | 251.3% |
| 2024-03-31 | $1.1B | -$1.5B | $14.3M | -$1.5B | -128.3% |
| 2024-06-30 | $1.2B | $3.0B | $20.8M | $3.0B | 254.7% |
| 2024-09-30 | $1.2B | $611.1M | $25.7M | $585.4M | 48.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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
Operating cash flow was sharply higher than a year ago but significantly lower than the prior quarter, directly influencing the level of free cash flow.
The change in operating cash flow drove both the year-over-year improvement and the sequential decline in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially. Operating cash flow, after moderate capital expenditure, converted to free cash flow that produced a margin substantially higher than a year ago but lower than the prior quarter.
Versus the prior quarter, operating cash flow and free cash flow were both lower, while capital expenditure was slightly higher. Compared to the same quarter a year earlier, revenue, operating cash flow, and free cash flow were all higher, with a notable improvement in free cash flow margin. The filing notes higher revenue and net income compared to the prior year, aligning with the increase in operating cash flow.
Monitor the sustainability of operating cash flow after the large sequential decline from the prior quarter.