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 the prior quarter, driven by higher operating cash flow. However, compared to the same period one year earlier, free cash flow was lower, reflecting a narrower margin.
- Operating cash flow as a percentage of revenue improved sequentially, leading to a higher free cash flow margin. Capital expenditure remained modest relative to cash flow.
- Compared to the prior quarter, revenue was slightly higher and cash conversion strengthened, resulting in improved free cash flow. Versus the year-ago quarter, revenue was stable but cash conversion weakened considerably.
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
$350.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$358.3M
Cash generated by operations before capital spending.
CapEx
$8.2M
Capital spending and related asset purchases.
FCF margin
12.8%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $2.4B | $495.7M | $6.3M | $489.4M | 20.1% |
| 2024-03-31 | $2.3B | $146.5M | $9.0M | $137.5M | 5.9% |
| 2024-06-30 | $2.6B | $232.7M | $6.4M | $226.3M | 8.7% |
| 2024-09-30 | $2.7B | $358.3M | $8.2M | $350.1M | 12.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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 improvement
Operating cash flow increased from the prior quarter, outpacing the rise in revenue and driving free cash flow higher. This improvement was the primary factor behind the expansion in free cash flow margin.
The higher cash generation supported a stronger free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved sequentially, leading to a higher free cash flow margin. Capital expenditure remained modest relative to cash flow.
Compared to the prior quarter, revenue was slightly higher and cash conversion strengthened, resulting in improved free cash flow. Versus the year-ago quarter, revenue was stable but cash conversion weakened considerably.
Monitor whether operating cash flow can sustain its sequential improvement, given the year-over-year decline.