Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from both the prior quarter and the year-ago quarter, driving free cash flow higher despite stable revenue. The free cash flow margin expanded significantly, reflecting a stronger cash conversion rate.
- Revenue was unchanged from the prior quarter and higher than a year ago. Operating cash flow rose substantially versus both periods, while capital expenditure was slightly lower. The combination produced a much higher free cash flow and a meaningfully improved free cash flow margin.
- Compared with the immediately preceding quarter, free cash flow and free cash flow margin both improved markedly, driven by higher operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin also strengthened, with operating cash flow the primary factor.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$789.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$830.0M
Cash generated by operations before capital spending.
CapEx
$41.0M
Capital spending and related asset purchases.
FCF margin
19.6%
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 | $3.6B | $391.0M | $49.0M | $342.0M | 9.4% |
| 2024-06-30 | $3.8B | $711.0M | $56.0M | $655.0M | 17.4% |
| 2024-09-30 | $4.0B | $510.0M | $50.0M | $460.0M | 11.5% |
| 2024-12-31 | $4.0B | $830.0M | $41.0M | $789.0M | 19.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 131.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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.
Operating Cash Flow Surge
Operating cash flow rose sharply from both the prior quarter and the year-ago quarter, while revenue was stable sequentially and higher year over year. This drove a substantial increase in free cash flow and a notable expansion in free cash flow margin.
The stronger cash conversion improved free cash flow and margin without a corresponding increase in revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter and higher than a year ago. Operating cash flow rose substantially versus both periods, while capital expenditure was slightly lower. The combination produced a much higher free cash flow and a meaningfully improved free cash flow margin.
Compared with the immediately preceding quarter, free cash flow and free cash flow margin both improved markedly, driven by higher operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin also strengthened, with operating cash flow the primary factor.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.