Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased from the prior quarter and the same quarter one year earlier, leading to higher free cash flow and an improved margin. The company's cash conversion strengthened as operating cash flow grew faster than revenue.
- Revenue growth was accompanied by a larger increase in operating cash flow, resulting in a higher free cash flow margin. Capital expenditure remained relatively stable, supporting the conversion improvement.
- Compared to the immediately preceding quarter, all key metrics improved: revenue, operating cash flow, free cash flow, and margin. Versus the same quarter one year earlier, revenue and cash flow metrics were also higher, with the margin widening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$651.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$690.0M
Cash generated by operations before capital spending.
CapEx
$39.0M
Capital spending and related asset purchases.
FCF margin
17.7%
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 | $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% |
| 2024-12-31 | $3.7B | $690.0M | $39.0M | $651.0M | 17.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 193.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.0B | 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 Growth
Operating cash flow rose substantially from both the previous quarter and the year-ago quarter, outpacing revenue growth. This was the strongest factor driving the increase in free cash flow.
The improvement in operating cash flow directly elevated free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth was accompanied by a larger increase in operating cash flow, resulting in a higher free cash flow margin. Capital expenditure remained relatively stable, supporting the conversion improvement.
Compared to the immediately preceding quarter, all key metrics improved: revenue, operating cash flow, free cash flow, and margin. Versus the same quarter one year earlier, revenue and cash flow metrics were also higher, with the margin widening.
Monitor the trajectory of capital expenditure, which was slightly higher than the prior quarter but lower than the year-ago period.