Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the prior quarter and the same quarter last year. Operating cash flow was lower than the prior quarter but higher than a year ago.
- Revenue increased while operating cash flow decreased from the prior quarter, resulting in a lower cash conversion rate. Capital expenditure was significantly lower than the prior quarter, which helped free cash flow turn positive and improved the free cash flow margin.
- Compared to the prior quarter, revenue was higher, operating cash flow was lower, capital expenditure was lower, and free cash flow improved from negative to positive. Compared to the same quarter last year, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$370.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$563.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$897.0M
Cash generated by operations before capital spending.
CapEx
$334.0M
Capital spending and related asset purchases.
FCF margin
11.5%
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 | $3.3B | $1.1B | $2.6B | -$1.5B | -43.6% |
| 2024-03-31 | $3.7B | $1.3B | $242.0M | $1.1B | 29.1% |
| 2024-06-30 | $4.1B | $1.6B | $2.1B | -$567.0M | -13.8% |
| 2024-09-30 | $4.9B | $897.0M | $334.0M | $563.0M | 11.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 50.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.8% | 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.
Revenue Growth and Lower Capex
Revenue was higher than both the prior quarter and the same quarter last year. Capital expenditure was substantially lower than the prior quarter, which directly supported the swing to positive free cash flow.
The combination of higher revenue and lower capital expenditure drove free cash flow to a positive level and improved the free cash flow margin.
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 from the prior quarter, resulting in a lower cash conversion rate. Capital expenditure was significantly lower than the prior quarter, which helped free cash flow turn positive and improved the free cash flow margin.
Compared to the prior quarter, revenue was higher, operating cash flow was lower, capital expenditure was lower, and free cash flow improved from negative to positive. Compared to the same quarter last year, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
Monitor the level of capital expenditure in future quarters, as its reduction was a key factor in the free cash flow improvement.