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 but higher than the same quarter last year. Operating cash flow and free cash flow improved significantly compared to both the preceding quarter and the year-ago period, resulting in a much higher free cash flow margin.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter. Capital expenditure was lower in absolute terms, which together with stronger operating cash flow drove free cash flow and free cash flow margin higher.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all substantially higher. Versus the same quarter one year earlier, revenue was higher and all cash flow metrics improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$788.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$235.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$238.4M
Cash generated by operations before capital spending.
CapEx
$2.8M
Capital spending and related asset purchases.
FCF margin
41.7%
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 | $603.1M | $250.7M | $3.6M | $247.1M | 41.0% |
| 2024-06-30 | $518.6M | $213.8M | $1.6M | $212.2M | 40.9% |
| 2024-09-30 | $626.5M | $98.1M | $4.5M | $93.6M | 14.9% |
| 2024-12-31 | $565.1M | $238.4M | $2.8M | $235.7M | 41.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 286.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$822.8M | 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 Strength
Operating cash flow was materially higher than both the prior quarter and the year-ago quarter, even as revenue declined sequentially. This was the strongest observable driver of the quarter's free cash flow improvement.
The higher operating cash flow directly lifted free cash flow and free cash flow margin to levels well above recent comparisons.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter. Capital expenditure was lower in absolute terms, which together with stronger operating cash flow drove free cash flow and free cash flow margin higher.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all substantially higher. Versus the same quarter one year earlier, revenue was higher and all cash flow metrics improved.
Monitor the trend in accounts receivable, which decreased from the prior quarter end, as it directly affects operating cash flow conversion.