Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to a negative figure one year earlier, driven by higher operating cash flow. Revenue increased versus both the prior quarter and the same quarter last year.
- Operating cash flow improved compared to the same quarter last year but decreased from the previous quarter. Capital expenditure was slightly higher than both comparison periods, resulting in free cash flow that was lower than the prior quarter but higher than the year-ago quarter. The free cash flow margin improved from a negative value one year earlier but weakened from the preceding quarter.
- Compared to the immediately preceding quarter, free cash flow and its margin were weaker due to lower operating cash flow despite slightly higher revenue. Versus the same quarter one year earlier, free cash flow and its margin were significantly higher, with improved operating cash flow and higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$956.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$85.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$333.0M
Cash generated by operations before capital spending.
CapEx
$247.9M
Capital spending and related asset purchases.
FCF margin
2.1%
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 | $3.7B | $452.4M | $206.4M | $246.0M | 6.6% |
| 2024-03-31 | $3.8B | $396.4M | $208.5M | $187.9M | 4.9% |
| 2024-06-30 | $3.9B | $679.3M | $241.4M | $437.9M | 11.2% |
| 2024-09-30 | $4.0B | $333.0M | $247.9M | $85.0M | 2.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.6B | 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 recovery
Operating cash flow was substantially higher than the same quarter one year earlier, which was the primary factor behind the positive swing in free cash flow. Revenue also rose compared to both the prior quarter and the year-ago period.
Free cash flow turned from negative to positive compared to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved compared to the same quarter last year but decreased from the previous quarter. Capital expenditure was slightly higher than both comparison periods, resulting in free cash flow that was lower than the prior quarter but higher than the year-ago quarter. The free cash flow margin improved from a negative value one year earlier but weakened from the preceding quarter.
Compared to the immediately preceding quarter, free cash flow and its margin were weaker due to lower operating cash flow despite slightly higher revenue. Versus the same quarter one year earlier, free cash flow and its margin were significantly higher, with improved operating cash flow and higher revenue.
Monitor the relationship between operating cash flow and revenue, as operating cash flow declined sequentially while revenue rose.