Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened compared to both the prior quarter and the same quarter last year. Revenue was lower than the prior quarter but higher than a year ago, while operating cash flow remained relatively stable.
- Operating cash flow was slightly lower than the prior quarter and the year-ago quarter, while capital expenditure increased, resulting in a lower free cash flow and a weakened free cash flow margin relative to both comparison periods.
- Compared to the prior quarter, revenue was lower and capital expenditure was higher, leading to a lower free cash flow and margin. Versus the same quarter last year, revenue was higher but capital expenditure was also higher, with free cash flow and margin both lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$521.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$124.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$325.4M
Cash generated by operations before capital spending.
CapEx
$201.3M
Capital spending and related asset purchases.
FCF margin
5.8%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $2.0B | $260.4M | $76.7M | $183.7M | 9.3% |
| 2024-06-30 | $2.1B | $278.3M | $245.0M | $33.3M | 1.6% |
| 2024-09-30 | $2.2B | $327.1M | $146.7M | $180.4M | 8.3% |
| 2024-12-31 | $2.1B | $325.4M | $201.3M | $124.1M | 5.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 56.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher in the current quarter compared to both the immediately preceding quarter and the same quarter one year earlier, which was the strongest observable factor in the reduction of free cash flow.
Higher capital expenditure directly reduced free cash flow despite relatively stable operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was slightly lower than the prior quarter and the year-ago quarter, while capital expenditure increased, resulting in a lower free cash flow and a weakened free cash flow margin relative to both comparison periods.
Compared to the prior quarter, revenue was lower and capital expenditure was higher, leading to a lower free cash flow and margin. Versus the same quarter last year, revenue was higher but capital expenditure was also higher, with free cash flow and margin both lower.
Monitor the level of capital expenditure, which was higher in the current quarter compared to both the prior quarter and the year-ago quarter.