Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow generated in the current quarter was lower than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow decreased versus the prior year while capital expenditure was slightly reduced from the year-ago level but remained well below the preceding quarter.
- Revenue for the current quarter was higher than both comparison periods, yet operating cash flow fell short of the prior-year quarter and was only slightly higher than the preceding quarter. Free cash flow margin weakened significantly compared with both the preceding quarter and the year-ago quarter.
- Compared with the preceding quarter, revenue was substantially higher while operating cash flow was marginally higher, but capital expenditure was significantly lower, resulting in a much higher free cash flow. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$806.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$223.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$310.2M
Cash generated by operations before capital spending.
CapEx
$87.1M
Capital spending and related asset purchases.
FCF margin
32.2%
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 | $657.9M | $294.5M | $77.3M | $217.2M | 33.0% |
| 2024-06-30 | -$594.3M | $425.6M | $91.6M | $334.0M | -56.2% |
| 2024-09-30 | $41.9M | $304.7M | $272.3M | $32.4M | 77.2% |
| 2024-12-31 | $693.7M | $310.2M | $87.1M | $223.0M | 32.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure reduction
Capital expenditure declined significantly from the preceding quarter and was also slightly lower than the year-ago quarter. This reduction was the most notable factor that allowed free cash flow to be substantially higher than the prior quarter.
Lower capital expenditure directly boosted free cash flow relative to the preceding quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue for the current quarter was higher than both comparison periods, yet operating cash flow fell short of the prior-year quarter and was only slightly higher than the preceding quarter. Free cash flow margin weakened significantly compared with both the preceding quarter and the year-ago quarter.
Compared with the preceding quarter, revenue was substantially higher while operating cash flow was marginally higher, but capital expenditure was significantly lower, resulting in a much higher free cash flow. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trajectory of operating cash flow given its decline compared with the same quarter last year despite higher revenue.