Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow rose compared to both the prior quarter and the same quarter last year, supported by higher revenue and operating cash flow. The free cash flow margin also improved over both periods.
- Revenue increased, and operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter but similar to the year-ago level.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower. Versus the same quarter last year, all metrics except capital expenditure improved, with capital expenditure remaining stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$543.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$567.6M
Cash generated by operations before capital spending.
CapEx
$24.5M
Capital spending and related asset purchases.
FCF margin
11.0%
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 | $3.9B | $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% |
| 2024-12-31 | $4.9B | $567.6M | $24.5M | $543.1M | 11.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and operating cash flow growth
Revenue increased compared to both prior periods, and operating cash flow expanded more than revenue, boosting free cash flow. The free cash flow margin strengthened accordingly.
The higher free cash flow strengthened the company's overall liquidity position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter but similar to the year-ago level.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower. Versus the same quarter last year, all metrics except capital expenditure improved, with capital expenditure remaining stable.
The company's debt-to-capitalization ratio, which decreased from the prior year, and its sizable cash and available credit facility are key metrics to monitor for future cash flow generation.