Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened significantly versus both the preceding quarter and the same quarter one year earlier, driven by lower operating cash flow and higher capital expenditure. The free cash flow margin contracted sharply as revenue declined slightly and operating cash flow fell more than proportionately.
- Revenue decreased slightly from the prior quarter, while operating cash flow fell substantially and capital expenditure increased, resulting in a much lower free cash flow and free cash flow margin. Compared with the same quarter last year, revenue was higher but operating cash flow and free cash flow both decreased, and capital expenditure increased, causing the margin to decline sharply.
- Relative to the preceding quarter, free cash flow and margin were lower, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were also lower, as operating cash flow decreased and capital expenditure rose, despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$699.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$138.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$346.0M
Cash generated by operations before capital spending.
CapEx
$208.0M
Capital spending and related asset purchases.
FCF margin
3.7%
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 | $3.8B | -$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% |
| 2024-12-31 | $3.7B | $346.0M | $208.0M | $138.0M | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -49.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.5B | 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 Contraction
Operating cash flow was substantially lower than both the preceding quarter and the same quarter one year earlier, while capital expenditure was higher. This combination drove a sharp decline in free cash flow and free cash flow margin.
The lower operating cash flow was the strongest observable driver of the weakened free cash flow performance in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased slightly from the prior quarter, while operating cash flow fell substantially and capital expenditure increased, resulting in a much lower free cash flow and free cash flow margin. Compared with the same quarter last year, revenue was higher but operating cash flow and free cash flow both decreased, and capital expenditure increased, causing the margin to decline sharply.
Relative to the preceding quarter, free cash flow and margin were lower, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were also lower, as operating cash flow decreased and capital expenditure rose, despite higher revenue.
Monitor whether operating cash flow can recover toward the levels seen in the prior quarter and the year-ago period, as it was the primary factor behind the free cash flow decline.