Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin held stable year over year despite lower revenue and operating cash flow. Capital expenditure decreased compared to both the prior quarter and the same quarter last year.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow declined from both comparison periods, while free cash flow was slightly above the year-ago level but well below the prior quarter. The free cash flow margin matched the year-ago figure but was lower than the prior quarter.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all weakened. Versus the same quarter last year, revenue was higher, operating cash flow was lower, free cash flow was slightly higher, and margin was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$806.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$277.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$440.1M
Cash generated by operations before capital spending.
CapEx
$162.5M
Capital spending and related asset purchases.
FCF margin
15.0%
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 | $1.5B | $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% |
| 2024-12-31 | $1.9B | $440.1M | $162.5M | $277.6M | 15.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 94.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure was lower than both the prior quarter and the same quarter last year. This reduction helped free cash flow remain near the year-ago level despite a decline in operating cash flow.
The lower capital outlay was the strongest observable factor supporting free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow declined from both comparison periods, while free cash flow was slightly above the year-ago level but well below the prior quarter. The free cash flow margin matched the year-ago figure but was lower than the prior quarter.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all weakened. Versus the same quarter last year, revenue was higher, operating cash flow was lower, free cash flow was slightly higher, and margin was stable.
Monitor whether the lower capital expenditure level persists, as it supported free cash flow relative to operating cash flow this quarter.