Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved markedly as operating cash flow rose faster than revenue, lifting free cash flow and margin. Both the current quarter and year-ago comparisons show stronger cash generation.
- Revenue increased while operating cash flow expanded at a greater pace, and capital expenditure was lower than both the prior quarter and the year-ago period. This combination produced a higher free cash flow and a wider free cash flow margin.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$631.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$637.0M
Cash generated by operations before capital spending.
CapEx
$5.6M
Capital spending and related asset purchases.
FCF margin
22.2%
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 | $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% |
| 2024-12-31 | $2.8B | $637.0M | $5.6M | $631.5M | 22.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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 Expansion
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, outpacing revenue growth. This was the primary observable factor behind the improvement in free cash flow and margin.
The higher operating cash flow directly lifted free cash flow and margin without requiring a proportional increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow expanded at a greater pace, and capital expenditure was lower than both the prior quarter and the year-ago period. This combination produced a higher free cash flow and a wider free cash flow margin.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow and margin improved.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.