Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin declined sharply from the prior quarter, while revenue was slightly lower. Compared to the same quarter last year, free cash flow and margin also decreased despite stable revenue.
- Operating cash flow decreased significantly relative to revenue, and capital expenditure increased, resulting in a lower free cash flow and margin than both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and margin weakened substantially, with operating cash flow notably lower and capital expenditure higher. Year-over-year, free cash flow and margin also weakened, as operating cash flow fell while capital expenditure edged up.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$692.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$63.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$86.5M
Cash generated by operations before capital spending.
CapEx
$22.7M
Capital spending and related asset purchases.
FCF margin
6.6%
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 | $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% |
| 2024-12-31 | $972.9M | $86.5M | $22.7M | $63.8M | 6.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 38.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 decline
Operating cash flow was substantially lower than both the prior quarter and the year-ago quarter, despite revenue remaining relatively stable. This decline directly drove the reduction in free cash flow and margin.
Lower operating cash flow weakened cash conversion and reduced free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased significantly relative to revenue, and capital expenditure increased, resulting in a lower free cash flow and margin than both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and margin weakened substantially, with operating cash flow notably lower and capital expenditure higher. Year-over-year, free cash flow and margin also weakened, as operating cash flow fell while capital expenditure edged up.
Monitor the trajectory of operating cash flow relative to revenue in subsequent quarters.