Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower sequentially but higher than the prior-year period. Free cash flow increased from the prior quarter but decreased from the same quarter last year.
- Operating cash flow improved sequentially, resulting in a higher free cash flow margin. However, capital expenditure increased compared to both the prior quarter and the prior-year period.
- Free cash flow margin strengthened versus the immediate prior quarter but weakened compared to the same quarter one year earlier.
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
$417.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$455.9M
Cash generated by operations before capital spending.
CapEx
$38.7M
Capital spending and related asset purchases.
FCF margin
9.3%
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 | $4.3B | $288.4M | $24.6M | $263.8M | 6.1% |
| 2024-03-31 | $3.9B | $239.8M | $24.1M | $215.7M | 5.5% |
| 2024-06-30 | $4.6B | $417.5M | $31.2M | $386.2M | 8.4% |
| 2024-09-30 | $4.5B | $455.9M | $38.7M | $417.2M | 9.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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, contributing to a higher free cash flow despite a slight decline in revenue.
The sequential improvement in cash generation supports free cash flow growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved sequentially, resulting in a higher free cash flow margin. However, capital expenditure increased compared to both the prior quarter and the prior-year period.
Free cash flow margin strengthened versus the immediate prior quarter but weakened compared to the same quarter one year earlier.
Monitor capital expenditure trends as they have increased significantly relative to both the prior quarter and the year-ago period.