Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sequentially as operating cash flow rose while revenue declined, leading to a higher free cash flow margin. Compared to the same quarter last year, both operating cash flow and free cash flow were lower, resulting in a weakened margin.
- Revenue was lower than the prior quarter, but operating cash flow increased substantially, driving free cash flow higher and expanding the free cash flow margin. Capital expenditure was slightly higher than the preceding quarter.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
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
$623.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$769.0M
Cash generated by operations before capital spending.
CapEx
$146.0M
Capital spending and related asset purchases.
FCF margin
15.5%
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 | $2.3B | $898.0M | $135.0M | $763.0M | 32.5% |
| 2024-03-31 | $3.8B | -$60.0M | $252.0M | -$312.0M | -8.1% |
| 2024-06-30 | $4.2B | $365.0M | $115.0M | $250.0M | 5.9% |
| 2024-09-30 | $4.0B | $769.0M | $146.0M | $623.0M | 15.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.2B | 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 Recovery
Operating cash flow rose sharply from the prior quarter, more than offsetting a modest increase in capital expenditure and a decline in revenue. This drove a significant improvement in free cash flow and margin.
The quarter's cash conversion strengthened compared to the prior period, though it remained below the level of one year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, but operating cash flow increased substantially, driving free cash flow higher and expanding the free cash flow margin. Capital expenditure was slightly higher than the preceding quarter.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
Monitor whether operating cash flow can sustain its sequential improvement given the decline in revenue.