Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as higher revenue and lower capital expenditure offset a slight decline in operating cash flow. Compared to the same quarter last year, free cash flow and margin weakened significantly despite higher revenue.
- Revenue increased while operating cash flow decreased slightly, leading to a lower cash conversion rate. Capital expenditure declined, which helped free cash flow rise and margin improve modestly versus the prior quarter.
- Compared to the prior quarter, free cash flow and margin were higher, driven by lower capital expenditure. Versus the same quarter last year, free cash flow and margin were lower, as operating cash flow declined sharply despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$565.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$712.0M
Cash generated by operations before capital spending.
CapEx
$147.0M
Capital spending and related asset purchases.
FCF margin
8.6%
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 | $5.0B | $238.0M | $83.1M | $154.8M | 3.1% |
| 2024-06-30 | $5.6B | $391.3M | $161.5M | $229.9M | 4.1% |
| 2024-09-30 | $6.5B | $739.9M | $212.5M | $527.4M | 8.1% |
| 2024-12-31 | $6.6B | $712.0M | $147.0M | $565.0M | 8.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 185.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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.
Capital expenditure reduction
Capital expenditure decreased from the prior quarter and was lower than the year-ago quarter, supporting free cash flow improvement sequentially.
Lower capital expenditure was the strongest observable factor enabling free cash flow to rise despite weaker operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow decreased slightly, leading to a lower cash conversion rate. Capital expenditure declined, which helped free cash flow rise and margin improve modestly versus the prior quarter.
Compared to the prior quarter, free cash flow and margin were higher, driven by lower capital expenditure. Versus the same quarter last year, free cash flow and margin were lower, as operating cash flow declined sharply despite higher revenue.
Monitor the trajectory of operating cash flow, which declined both sequentially and year-over-year despite revenue growth.