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 operating cash flow rose more than capital expenditure, though both cash flow and margin remained well below the year-ago level. Revenue was lower than both the prior quarter and the same quarter last year.
- Revenue declined while operating cash flow increased sequentially, leading to a higher free cash flow margin. Capital expenditure was higher than the prior quarter but similar to the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and margin improved. Compared to the same quarter one year earlier, free cash flow and margin weakened significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$639.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$367.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$432.0M
Cash generated by operations before capital spending.
CapEx
$65.0M
Capital spending and related asset purchases.
FCF margin
18.0%
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 | $2.1B | $33.0M | $68.0M | -$35.0M | -1.7% |
| 2024-03-31 | $2.1B | $120.0M | $51.0M | $69.0M | 3.2% |
| 2024-06-30 | $2.1B | $279.0M | $41.0M | $238.0M | 11.6% |
| 2024-09-30 | $2.0B | $432.0M | $65.0M | $367.0M | 18.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 152.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | 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 Recovery
Operating cash flow increased from the prior quarter despite lower revenue, driving the improvement in free cash flow and margin.
This was the strongest observable driver of the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined while operating cash flow increased sequentially, leading to a higher free cash flow margin. Capital expenditure was higher than the prior quarter but similar to the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and margin improved. Compared to the same quarter one year earlier, free cash flow and margin weakened significantly.
Monitor whether operating cash flow can sustain its sequential improvement given the lower revenue base.