Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin was stable sequentially but improved year-over-year.
- Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin remained above a quarter of revenue, indicating a consistent conversion rate.
- Compared to the prior quarter, revenue was higher while operating cash flow was similar, leading to a slightly lower free cash flow margin. Versus the same quarter last year, all metrics were higher, with free cash flow margin showing improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$199.6M
Capital spending and related asset purchases.
FCF margin
28.1%
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 | $3.1B | $1.5B | $133.9M | $1.4B | 43.8% |
| 2024-06-30 | $3.5B | $354.0M | $180.5M | $173.5M | 4.9% |
| 2024-09-30 | $3.7B | $1.3B | $241.9M | $1.0B | 28.2% |
| 2024-12-31 | $3.8B | $1.3B | $199.6M | $1.1B | 28.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | 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
Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier, providing a larger base for cash generation.
Higher revenue supported a larger absolute free cash flow despite a stable conversion rate.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin remained above a quarter of revenue, indicating a consistent conversion rate.
Compared to the prior quarter, revenue was higher while operating cash flow was similar, leading to a slightly lower free cash flow margin. Versus the same quarter last year, all metrics were higher, with free cash flow margin showing improvement.
Monitor capital expenditure trends, as they were lower than both the prior quarter and the year-ago quarter.