Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow improved year-over-year but declined sequentially, reflecting a lower cash conversion rate.
- Operating cash flow rose sharply from a year ago, leading to a higher free cash flow despite increased capital spending. However, compared to the prior quarter, operating cash flow decreased while revenue grew, resulting in a lower free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and margin weakened as operating cash flow did not keep pace with revenue growth. Versus the same quarter one year earlier, all metrics improved significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$547.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$652.5M
Cash generated by operations before capital spending.
CapEx
$104.6M
Capital spending and related asset purchases.
FCF margin
30.7%
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 | $1.6B | -$157.4M | $81.9M | -$239.3M | -14.6% |
| 2024-03-31 | $1.8B | $637.3M | $102.5M | $534.8M | 30.6% |
| 2024-06-30 | $1.7B | $677.7M | $103.3M | $574.4M | 33.1% |
| 2024-09-30 | $1.8B | $652.5M | $104.6M | $547.9M | 30.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | 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.
Year-over-Year Free Cash Flow Growth
Free cash flow increased substantially compared to the same quarter last year, driven by a large rise in operating cash flow that more than offset higher capital expenditures.
This improvement strengthens the company's financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose sharply from a year ago, leading to a higher free cash flow despite increased capital spending. However, compared to the prior quarter, operating cash flow decreased while revenue grew, resulting in a lower free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and margin weakened as operating cash flow did not keep pace with revenue growth. Versus the same quarter one year earlier, all metrics improved significantly.
Monitor the trend in operating cash flow relative to revenue, as the sequential decline suggests a potential shift in cash conversion efficiency.