Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sequentially but weakened year-over-year, as operating cash flow fell from the prior quarter while capital expenditure remained relatively stable. Revenue was unchanged from the prior quarter and higher than a year ago.
- Revenue was stable quarter-over-quarter, operating cash flow decreased, capital expenditure was slightly lower, and free cash flow declined, leading to a lower free cash flow margin. Compared to a year ago, revenue grew, operating cash flow and free cash flow both increased, and the free cash flow margin improved.
- Operating cash flow in the current quarter was lower than the prior quarter but higher than the same quarter last year. Free cash flow followed a similar pattern: down sequentially and up year-over-year. Capital expenditure was slightly below the prior quarter and above a year ago.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$680.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$148.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$250.8M
Cash generated by operations before capital spending.
CapEx
$101.9M
Capital spending and related asset purchases.
FCF margin
11.2%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $1.3B | $291.2M | $118.9M | $172.3M | 13.3% |
| 2024-03-31 | $1.4B | $254.8M | $91.5M | $163.4M | 11.5% |
| 2024-06-30 | $1.3B | $303.7M | $108.1M | $195.6M | 15.3% |
| 2024-09-30 | $1.3B | $250.8M | $101.9M | $148.9M | 11.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Decrease
Operating cash flow in the current quarter was lower than the immediately preceding quarter, driving the sequential decline in free cash flow despite a stable capital expenditure.
The sequential drop in operating cash flow is the strongest observable driver of the weakening in free cash flow from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable quarter-over-quarter, operating cash flow decreased, capital expenditure was slightly lower, and free cash flow declined, leading to a lower free cash flow margin. Compared to a year ago, revenue grew, operating cash flow and free cash flow both increased, and the free cash flow margin improved.
Operating cash flow in the current quarter was lower than the prior quarter but higher than the same quarter last year. Free cash flow followed a similar pattern: down sequentially and up year-over-year. Capital expenditure was slightly below the prior quarter and above a year ago.
Monitor operating cash flow next quarter to assess whether the sequential decline continues or reverses.