Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased compared with both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. The cash conversion margin strengthened accordingly.
- Operating cash flow grew while capital expenditure declined, resulting in a higher free cash flow. The free cash flow margin improved as revenue also increased.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, the same directional trends were observed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$751.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$243.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$332.8M
Cash generated by operations before capital spending.
CapEx
$89.2M
Capital spending and related asset purchases.
FCF margin
17.8%
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 | $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% |
| 2024-12-31 | $1.4B | $332.8M | $89.2M | $243.6M | 17.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 140.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | 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 Growth
Operating cash flow increased significantly relative to both prior periods, while capital expenditure was reduced. This combination drove free cash flow higher.
The higher free cash flow and margin reflect improved cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew while capital expenditure declined, resulting in a higher free cash flow. The free cash flow margin improved as revenue also increased.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, the same directional trends were observed.
The sustainability of the working capital improvements that supported operating cash flow, as described in the filing.