Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow improved significantly versus both periods, leading to a higher free cash flow margin.
- Operating cash flow increased while capital expenditure remained relatively stable, resulting in higher free cash flow and an improved free cash flow margin relative to revenue.
- Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was stable while operating cash flow, free cash flow, and margin were all higher.
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
$362.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$394.0M
Cash generated by operations before capital spending.
CapEx
$32.0M
Capital spending and related asset purchases.
FCF margin
10.2%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $3.6B | $597.0M | $42.0M | $555.0M | 15.3% |
| 2024-03-31 | $3.4B | $171.0M | $31.0M | $140.0M | 4.1% |
| 2024-06-30 | $3.6B | $308.0M | $24.0M | $284.0M | 7.9% |
| 2024-09-30 | $3.5B | $394.0M | $32.0M | $362.0M | 10.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.1B | 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 was higher than both the prior quarter and the same quarter last year, while revenue remained essentially flat. This was the strongest observable driver of the increase in free cash flow and margin.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin without a corresponding increase in revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased while capital expenditure remained relatively stable, resulting in higher free cash flow and an improved free cash flow margin relative to revenue.
Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was stable while operating cash flow, free cash flow, and margin were all higher.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.