Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter and was higher than the same quarter last year, driven by a strong increase in operating cash flow. The free cash flow margin expanded significantly compared to both periods.
- Revenue was stable versus the prior quarter and slightly lower than a year ago, but operating cash flow rose substantially, leading to a much higher free cash flow after a reduced capital expenditure. The free cash flow margin improved markedly from both the preceding quarter and the year-ago quarter.
- Compared to the prior quarter, free cash flow was higher due to a large increase in operating cash flow and a lower capital expenditure. Versus the same quarter last year, free cash flow was higher despite slightly lower revenue, as operating cash flow improved and capital expenditure was reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$803.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$498.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$595.0M
Cash generated by operations before capital spending.
CapEx
$96.8M
Capital spending and related asset purchases.
FCF margin
24.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $1.8B | $481.6M | $206.3M | $275.3M | 15.0% |
| 2024-03-31 | $1.5B | $173.4M | $152.8M | $20.6M | 1.3% |
| 2024-06-30 | $2.0B | $201.1M | $191.4M | $9.7M | 0.5% |
| 2024-09-30 | $2.0B | $595.0M | $96.8M | $498.2M | 24.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 240.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.9B | 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 Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, while revenue remained relatively stable. This was the primary factor behind the improved free cash flow and margin.
The higher operating cash flow drove a significant increase in free cash flow and margin compared to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter and slightly lower than a year ago, but operating cash flow rose substantially, leading to a much higher free cash flow after a reduced capital expenditure. The free cash flow margin improved markedly from both the preceding quarter and the year-ago quarter.
Compared to the prior quarter, free cash flow was higher due to a large increase in operating cash flow and a lower capital expenditure. Versus the same quarter last year, free cash flow was higher despite slightly lower revenue, as operating cash flow improved and capital expenditure was reduced.
Monitor the level of capital expenditure in future quarters, as it was notably lower in the current period compared to both the prior quarter and the year-ago quarter.