Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter and slightly below the year-ago quarter. Operating cash flow and free cash flow were higher than a year earlier but lower than the preceding quarter.
- Operating cash flow converted to free cash flow after deducting capital expenditure, producing a free cash flow margin that was lower than the prior quarter but higher than the same quarter last year. Revenue declined sequentially while capital expenditure remained relatively stable, leading to a weakened cash conversion rate compared to the prior period.
- Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was slightly lower, while operating cash flow, free cash flow, and free cash flow margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$725.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$233.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$248.6M
Cash generated by operations before capital spending.
CapEx
$15.4M
Capital spending and related asset purchases.
FCF margin
23.5%
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 | $984.6M | $118.5M | $21.2M | $97.3M | 9.9% |
| 2024-03-31 | $1.0B | -$107.6M | $19.3M | -$126.9M | -12.5% |
| 2024-06-30 | $1.1B | $539.2M | $17.0M | $522.2M | 47.5% |
| 2024-09-30 | $993.4M | $248.6M | $15.4M | $233.2M | 23.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 167.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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.
Year-over-year free cash flow improvement
Free cash flow was higher than the same quarter last year, driven by a year-over-year increase in operating cash flow that more than offset a lower capital expenditure level. This resulted in a strengthened free cash flow margin compared to the year-ago period.
The year-over-year improvement in free cash flow margin is the strongest observable driver, indicating better cash efficiency relative to revenue compared to one year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted to free cash flow after deducting capital expenditure, producing a free cash flow margin that was lower than the prior quarter but higher than the same quarter last year. Revenue declined sequentially while capital expenditure remained relatively stable, leading to a weakened cash conversion rate compared to the prior period.
Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was slightly lower, while operating cash flow, free cash flow, and free cash flow margin were higher.
Monitor whether the seasonal cash usage pattern noted in the filing context shifts, as the current quarter continued to generate significant cash but at a lower level than the prior peak quarter.