Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to a negative result one year earlier, driven by a substantial improvement in operating cash flow. Revenue was slightly lower than both the prior quarter and the same quarter last year.
- Operating cash flow was significantly higher than the year-ago quarter, while capital expenditure remained stable, resulting in a positive free cash flow margin. The margin improved markedly from the negative level of one year earlier but was lower than the preceding quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, 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
$967.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$293.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$364.0M
Cash generated by operations before capital spending.
CapEx
$71.0M
Capital spending and related asset purchases.
FCF margin
15.6%
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 | $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% |
| 2024-12-31 | $1.9B | $364.0M | $71.0M | $293.0M | 15.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 159.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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 substantially from the year-ago quarter, turning free cash flow positive. This was the strongest observable driver of the quarter's cash conversion performance.
The improvement in operating cash flow was the key factor that shifted free cash flow from negative to positive year over year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was significantly higher than the year-ago quarter, while capital expenditure remained stable, resulting in a positive free cash flow margin. The margin improved markedly from the negative level of one year earlier but was lower than the preceding quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in operating cash flow, as its level was the primary factor behind the swing in free cash flow.