Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year, driven by higher revenue and operating cash flow, though it weakened from the prior quarter due to a decline in operating cash flow. The free cash flow margin strengthened year over year but decreased sequentially.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose year over year but fell from the previous quarter. Capital expenditure was stable across all periods. Free cash flow and free cash flow margin followed the same pattern as operating cash flow, improving year over year but declining sequentially.
- Compared to the prior quarter, free cash flow and free cash flow margin were lower, primarily due to a decrease in operating cash flow. Versus the same quarter last year, free cash flow and free cash flow margin were higher, supported by higher revenue and operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$911.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$200.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$255.4M
Cash generated by operations before capital spending.
CapEx
$55.4M
Capital spending and related asset purchases.
FCF margin
27.2%
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 | $704.0M | $372.2M | $55.2M | $317.0M | 45.0% |
| 2024-06-30 | $716.8M | $211.7M | $57.8M | $153.9M | 21.5% |
| 2024-09-30 | $725.3M | $296.2M | $55.5M | $240.7M | 33.2% |
| 2024-12-31 | $735.6M | $255.4M | $55.4M | $200.0M | 27.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.8B | 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 Revenue Growth
Revenue was higher than both the prior quarter and the same quarter last year, providing a stronger base for cash generation. Operating cash flow and free cash flow both improved year over year.
The year-over-year increase in revenue supported higher operating cash flow and free cash flow 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.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose year over year but fell from the previous quarter. Capital expenditure was stable across all periods. Free cash flow and free cash flow margin followed the same pattern as operating cash flow, improving year over year but declining sequentially.
Compared to the prior quarter, free cash flow and free cash flow margin were lower, primarily due to a decrease in operating cash flow. Versus the same quarter last year, free cash flow and free cash flow margin were higher, supported by higher revenue and operating cash flow.
Monitor the sequential decline in operating cash flow, as it was the primary factor behind the weakening free cash flow from the prior quarter.