Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow margin strengthened sequentially but was slightly lower than the year-ago period.
- Operating cash flow as a proportion of revenue was higher than the prior quarter, supporting a free cash flow margin that improved from the preceding period. Capital expenditure increased in absolute terms, yet free cash flow still rose.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin strengthened. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$474.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$225.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$282.6M
Cash generated by operations before capital spending.
CapEx
$57.4M
Capital spending and related asset purchases.
FCF margin
29.9%
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 | $599.8M | $7.3M | $44.0M | -$36.7M | -6.1% |
| 2024-06-30 | $729.9M | $216.1M | $44.8M | $171.2M | 23.5% |
| 2024-09-29 | $737.3M | $166.3M | $51.8M | $114.4M | 15.5% |
| 2024-12-31 | $752.9M | $282.6M | $57.4M | $225.2M | 29.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 154.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 rose compared to both the prior quarter and the same quarter last year, contributing to a higher free cash flow total. This was the strongest observable driver of the quarter's cash conversion performance.
Higher operating cash flow directly supported free cash flow despite increased capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter, supporting a free cash flow margin that improved from the preceding period. Capital expenditure increased in absolute terms, yet free cash flow still rose.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin strengthened. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow margin was slightly lower.
Monitor the trend in capital expenditure, which increased both sequentially and year-over-year.