Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable sequentially and increased year-over-year. Operating cash flow turned positive, leading to improved free cash flow and margin.
- Cash conversion improved as operating cash flow turned positive, while capital expenditure decreased slightly from the prior quarter. The resulting free cash flow and margin were higher than both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, free cash flow and margin improved from negative to positive. Versus the same quarter last year, free cash flow and margin were higher, supported by higher operating cash flow despite a modest increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$537.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$568.7M
Cash generated by operations before capital spending.
CapEx
$31.3M
Capital spending and related asset purchases.
FCF margin
13.8%
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 | $4.1B | $1.8B | $14.2M | $1.8B | 44.0% |
| 2024-03-31 | $3.6B | -$618.5M | $23.1M | -$641.6M | -17.7% |
| 2024-06-30 | $3.9B | -$141.7M | $39.2M | -$180.9M | -4.7% |
| 2024-09-30 | $3.9B | $568.7M | $31.3M | $537.4M | 13.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 139.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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 Recovery
Operating cash flow rebounded from a negative figure in the prior quarter to a positive level, exceeding the year-ago amount. This was the primary factor behind the improvement in free cash flow and margin.
The recovery in operating cash flow directly enabled positive free cash flow and a higher margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion improved as operating cash flow turned positive, while capital expenditure decreased slightly from the prior quarter. The resulting free cash flow and margin were higher than both the prior quarter and the year-ago quarter.
Compared to the prior quarter, free cash flow and margin improved from negative to positive. Versus the same quarter last year, free cash flow and margin were higher, supported by higher operating cash flow despite a modest increase in capital expenditure.
Monitor the trajectory of operating cash flow given its volatility between quarters.