Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter but higher year over year. Free cash flow margin improved compared to the same quarter last year but weakened sequentially.
- Operating cash flow was lower than the prior quarter but higher than a year ago, while capital expenditure decreased both sequentially and year over year. The resulting free cash flow margin improved year over year but weakened sequentially.
- Compared to the immediately preceding quarter, free cash flow and its margin were lower despite stable revenue, driven by a lower operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were higher on higher revenue and operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$307.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$325.5M
Cash generated by operations before capital spending.
CapEx
$17.8M
Capital spending and related asset purchases.
FCF margin
25.1%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $1.2B | $272.8M | $23.4M | $249.5M | 21.5% |
| 2024-03-31 | $1.2B | $402.0M | $21.2M | $380.8M | 31.8% |
| 2024-06-30 | $1.2B | $440.1M | $24.9M | $415.2M | 33.9% |
| 2024-09-30 | $1.2B | $325.5M | $17.8M | $307.7M | 25.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$241.2M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash conversion improvement
Free cash flow margin was higher compared to the same quarter last year, supported by higher operating cash flow and lower capital expenditure.
This strengthened the company's cash generation efficiency relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than a year ago, while capital expenditure decreased both sequentially and year over year. The resulting free cash flow margin improved year over year but weakened sequentially.
Compared to the immediately preceding quarter, free cash flow and its margin were lower despite stable revenue, driven by a lower operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were higher on higher revenue and operating cash flow.
Monitor the trend in operating cash flow, as it declined sequentially while revenue remained stable.